Verizon Communications Inc. has set its sights on the automobile business. The telecommunications giant has announced plans to acquire Hughes Telematics Inc., in what is described as a “definitive merger,” for an eye-catching $612 million. It is also creating a new forum designed to aggressively promote in-vehicle technology.
Verizon has been an active proponent of the so-called “connected car,” and has actively pitched the potential of its high-speed LTE network to automakers that also see huge profit potential in giving motorists many of the same features and services available in home or office.
Along with the proposed purchase of Hughes Telematics, or HTI, Verizon has formed the new 4G Venture Forum for Connected Cars, a group that will work with a number of leading automakers in an effort to find even more telematics opportunities.