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Audi taps AT&T to connect its 2016 fleet

Marco della Cava
USA TODAY
An Audi A3, shown here at the New York Auto show last year, was the first Audi model to roll out with AT&T 4G LTE hotspot.

With an increasingly saturated smartphone market, there's a growing war for new customer contracts – and AT&T just won a notable battle. The carrier will roll out its 4G LTE Wi-Fi service into Audi's entire 2016 model lineup, the two companies announced Tuesday at Mobile World Congress in Barcelona.

Audi debuted AT&T's 4G LTE service in its small A3 last year. The company first unveiled an automotive hot spot in 2013, with a 3G service tethered to its Audi Connect infotainment system that was supported by Deutsche Telekom's U.S. arm, T-Mobile.

The German automaker sold about 182,000 cars last year, a significant percentage of which were ordered with its Connect system. The new deal means AT&T has the opportunity to write up new or expanded data contracts as drivers increasingly become accustomed to incessant connectivity with faster download speeds.

General Motors began offering 4G LTE in many of its models last year, and most automakers are expected to follow this consumer-driven trend. A 4G LTE option is faster and typically can provide more uninterrupted service than 3G, but it can get pricey. Although in-car plans vary considerably, it's not uncommon to pay upward of $50 a month extra depending on download habits. But with smartphones and tablets becoming ubiquitous, automakers assume that few will want to leave their devices at home.

"The convenience and added benefit of having Audi Connect services in our vehicles, along with Wi-Fi access for up to eight devices, serves as a competitive advantage for our brand," Filip Brabec, Audi's director of product management, said in a statement. "We have been and intend to remain innovators in this field."

At the Consumer Electronics Show in Las Vegas in January, Audi showed off a new double-duty system with its own branded tablets that serve as both fixed screens for rear-seat passengers and, with a quick click, detachable devices that can be taken inside.

All 2016 Audi models with Connect – which range from the $30,000 A3 to the $115,000 S8 – will be delivered with an AT&T SIM card. High-speed connectivity may be a plus for bored kids eager to stream their latest high-definition movies, but it's increasingly vital to driver's whose cars technology is reliant on fast access to information.

For example, the latest Audi A6, A7 and TT sports car will feature an upgraded version of Connect that is capable of providing up-to-the-minute traffic information, semi-dynamic route guidance, and over the air map updates. The Connect system will also provide faster Google Earth and Street View enhancements to the automaker's revamped navigation system.

New Audi buyers who are also AT&T customers will be offered a Mobile Share data plan option to cover their automobile's newfound high-speed connectivity.

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