The in-car data business is booming, and Chevrolet is stepping up to help meet demand with a new, prepaid $20 monthly unlimited data plan – the first unlimited data plan for car owners from one of the big three in the U.S. The plan will let people connect in-car to OnStar 4G LTE Wi-Fi (in models that offer this, which includes all of its lineup for late-model vehicles).
It’s a big move for Chevrolet and OnStar because data use is on the rise – Chevrolet says that its customers used around 200 percent more data during 2016 than they did in 2015, with a significant portion of that growth coming from the second half of the year.
Chevy’s OnStar LTE connection is supplied by AT&T, and does not require any long-term commitment, so you can cancel at any time. The tech is obviously designed to be enjoyed by passengers, not drivers, but it’s increasingly in demand, especially for families with kids who want to stay connected while on the road.
Connected vehicles provide additional revenue streams for carmakers, so that could be the reason Chevrolet is willing to forgo more income from different pricing tiers in this instance. It should also boost that strong growth the GM-owned carmaker is already seeing in terms of demand for in-car data, which will help long-term with subsidizing the cost of a connected fleet with consumer subscriptions.