With Hughes' forthcoming OnStar competitor approaching its debut, more information on how it will be marketed is coming to the fore. While 70 percent of Hughes projected business will be of the subscription variety, 30 percent of Hughes business could be pay per use. Chrysler will install the Hughes Telematics control unit as standard equipment on all vehicles beginning in summer 2009. Mercedes-Benz will do the same beginning in November 2009. That will give Hughes a wide customer base to sell its turn-by-turn route directions, movie and other media downloads and car-diagnostic reports.
Offering another alternative to a yearly subscription is an interesting choice for Hughes to take. Automotive News quotes fees as low as $1.99, but there is no way Hughes is going to unlock your car for two bucks: Let's face it--they've got yah! I'm thinking that a remote unlock will run $24.99, but that's just me.
Tuesday, June 03, 2008
Pay Per Matic: Hughes Takes A Different Approach to Telematics
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