Chevy lowers pricing for 4G plans in ultra-competitive connected car market

Chevrolet slashed the prices of some of its 4G data plans in a move that underscores increasing competition in the connected car market.

The automaker halved the price of its 1 GB plan from $20 a month to $10 a month, and reduced its 10 GB plan from $80 a month to $40 a month. It also added a new 4 GB plan at $20 a month, and doubled the amount of data in its annual plan from 10 GB to 20 GB, retaining the yearly $150 charge.

Chevy, which claims to be the first carmaker to offer 4G services across its entire retail line, said its customers have used more than 3 million gigabytes of data in the last two years, with usage continuing to grow. The company has sold 2.1 million vehicles equipped with OnStar's 4G offering since June 2014.

The paid plans are in addition to Chevy's free basic plan, which includes advanced diagnostics, dealer maintenance notification and app-based features such as remote start and door locking and unlocking.

"As more people embrace the technology, it brings down the cost of entry for all users," said Laura Keck, OnStar's subscriber marketing strategy manager, in a prepared statement. "With these lower prices, we expect even more customers to use 4G LTE connectivity during this busy summer driving season."

But the price-cutting comes amidst ever-increasing competition in the burgeoning connected car market. Automakers, operating system providers, carriers and independent app developers are battling fiercely to become the go-to source for consumers in their vehicles, providing everything from navigation to in-car entertainment such as streaming music and video.

Verizon (NYSE: VZ) earlier this year quietly lowered the price of its "Hum," a combined hardware and software telematics product that is compatible with more than 150 million cars currently on the road. The nation's biggest mobile network operator also recently acquired Telogis, a startup that provides a platform for businesses' mobile workforces.

For more:
- see this Chevrolet press release

Related articles:
Verizon acquires Telogis in pursuit of connected cars for the enterprise
Verizon's Hum now cheaper, underscoring competitive consumer telematics market
Ford does about-face on connected car strategy, inks deal with AT&T to outfit 10M cars with LTE by 2020
Ford, GM, Toyota push against Apple, Google in expanding connected car market
GM CEO: We plan to capitalize on the connected car opportunity
AT&T partners with Autonet Mobile, Audiovox on connected car solutions
GM expects $350M in profit over next 3 years due to AT&T LTE deal
Ford reiterates opposition to embedded wireless

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