Technology Industry
Industry: Email Alert RSS FeedOnStar may bleed subscribers; Cellular providers drop analog for digital; Lexus and Mercedes are also at risk.(News)
RCR Wireless News, March, 2007
Byline: RALPH KISIEL, TIM MORAN Automotive News General Motors must dump 10 percent of its OnStar subscribers-about 500,000 users-because OnStar must cut off service to vehicles equipped with outdated analog telematics equipment. Next year, cellular phone service companies-which provide OnStar with its communications link to customers-are completing the transition from analog to digital service.
When the switch occurs on Jan. 1, OnStar risks losing customers who purchased a GM vehicle before the 2003 model year. That's when OnStar introduced digital telematics service. OnStar is sending letters to those subscribers offering a year of free service. What's the catch? They must buy or lease a new GM vehicle to take advantage of the offer. ...
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