OnStar Faces Determined New Challenger

Atlanta-based Hughes Telematics will introduce a service similar to OnStar for all Chrysler vehicles, breaking GM’s stranglehold on the technology. The service will utilize voice-activation technology similar to Ford’s new Sync system, which operates MP3 players and cell phones. An unnamed luxury car brand is also slated to announce it’s signing onto the service as well.

Similar to OnStar, the service will have a monthly subscription fee (OnStar charges $28.95 a month or $18.95 a month, depending on the level of service) and will include emergency communications, street-by-street navigation and roadside assistance, in addition to voice commands that can activate iPods and mobile phones.

By combining two popular, innovative services, Hughes Telematics hopes to offer consumers an alternative to OnStar, which is the only player in the market right now. In addition, Hughes will offer a pay-as-you-go option, so if drivers only want to look up directions a few times a year or download a few specific songs, they can pay for each use individually — an option OnStar doesn’t offer.

The system will also offer a rather Orwellian service called “teen-tracking,” where the car will track if it has gone beyond a certain area or made repeated trips to locations deemed inappropriate. No word yet as to whether the satellite service will then link into the radio to scold the teenager.

Upstart to Vie for OnStar’s Territory (Detroit Free Press)