The Analog-To-Digital Transition Affects Cars, Too

Telecom Policy Report, March 5, 2007

While Congress, the broadcast industry and owners of analog TV sets continue to fret over the analog-to-digital transition that finalized in 2009, owners of GM vehicles equipped with analog OnStar services (about 10 percent of GM's vehicles now on the road) have a choice to make by year's end: forget about using the emergency service as of Jan. 1, 2008, or buy a new GM vehicle that meets OnStar's digital-transmission standards.

OnStar wireless emergency service, launched in 1996, helped ensure that if an airbag installed in a GM vehicle deployed in the United States or Canada, the vehicle would be connected to emergency and medical sources using "the cellular network with the largest geographical coverage available." However, next year, wireless carriers won't have to support analog transmissions, due to a 2002 Federal Communications Commission (FCC) decision, and OnStar won't be able to support those older-model vehicles already on the road that haven't upgraded to digital. Right now, Verizon Wireless handles most OnStar traffic, and it hasn't commented on next year's transition.

"We at OnStar sincerely regret that we will not be able to provide OnStar service to vehicles with analog equipment after Dec. 31, 2007," GM says on its Web site. "All OnStar subscribers affected by this change will receive a letter from OnStar that outlines how this affects their service."

Beginning Jan. 1, 2008, OnStar service will be available only through dual-mode (analog/digital) equipment. Some 2002-04 GM models as well as all models purchased before 2002 are affected, as are some Acura, Audi, Subaru and Volkswagen models. GM plans to make OnStar a standard feature in all cars by the end of the year.

GM already has transitioned to digital OnStar equipment. The world's largest carmaker says some 2004, most 2005 and all 2006 and newer model-year GM vehicles with OnStar are equipped with dual-mode (analog/digital) equipment compatible with both the analog and digital cellular networks. Introducing new OnStar equipment is a complex process, because it's dependent on aligning the timing of the vehicle-ready OnStar equipment with vehicle development plans. Because each vehicle has its own development and manufacturing schedule, not all vehicles will receive the same OnStar equipment at the same time.

Although not required to do so by the FCC, GM says it currently has OnStar upgrade kits available for many analog/digital-ready GM vehicles. Upgrades reportedly cost between $299 and $579, and that includes service. However, analog-only vehicles cannot be upgraded. GM dealers can determine which OnStar equipment type was factory-installed in a vehicle from the vehicle identification number. The manufacturer says eligible OnStar subscribers who purchase a prepaid, non-refundable, non-transferable one-year OnStar subscription at the regular retail price (plus applicable subscription tax) will receive an equipment upgrade including parts and labor for $15, but time is running out on that deal. It's good only until March 14. In addition, the upgrade isn't covered by the GM New Vehicle Limited Warranty because it "is not required due to any defect in material or workmanship, but rather a decision that was made to support a different network in the cellular industry."

[Copyright 2006 Access Intelligence, LLC. All rights reserved.]