Verizon wins BMW US connected car connectivity deal

Verizon will provide telematics connectivity for newly manufactured BMW Group vehicles in the US, extending the carmaker's connected services through a partnership that combines Verizon's domestic mobile network with KDDI's global vehicle communications platform.

The agreement covers new BMW Group vehicles built for the US market, including BMW and MINI models. Verizon said it now provides 5G Standalone and LTE connectivity directly to those vehicles, supporting BMW ConnectedDrive and related digital services such as infotainment, remote functions, app-based features and telematics.

The arrangement gives Verizon a role in the communications stack for BMW Group's US vehicles at a time when carmakers are relying more heavily on software, remote diagnostics and connected services to support ownership, maintenance and in-car digital features. It also deepens Verizon's work in automotive connectivity through its existing relationship with Japanese telecoms group KDDI.

"Verizon is committed to delivering seamless connectivity for customers. Our collaboration with BMW Group and KDDI prioritizes innovation and capability to advance the connected experience for drivers across the U.S.," said Kyle Malady, Chief Executive Officer, Verizon Business.

US rollout

Verizon said the service applies to all newly manufactured BMW Group vehicles for the US market. The company will provide the underlying cellular link used by BMW ConnectedDrive, the group's connected vehicle platform, which supports services delivered to the car and between the vehicle and external systems.

That includes telematics functions used for vehicle data transmission as well as customer-facing digital services. BMW ConnectedDrive has long been part of the company's software and services strategy, covering functions such as remote access, over-the-air support, vehicle information and connected infotainment tools.

Under the new setup, the in-vehicle connection is carried over Verizon's 5G Standalone and LTE networks in the US. Verizon and KDDI said the BMW vehicles are the first to connect to Verizon's nationwide 5G Standalone for Connected Vehicles offering using Verizon's 5G core and 3GPP Release 16 standards for standalone 5G.

That matters because standalone 5G is designed to operate on a 5G core network rather than relying on parts of older 4G infrastructure. In automotive settings, that can support more direct handling of connected services and future telematics use cases, depending on how manufacturers build those services into the vehicle platform.

KDDI role

The deal is built on a longer-running relationship between Verizon and KDDI, which provides IoT services to original equipment manufacturers through its Global Communications Platform. KDDI said that platform is already used to support connected services for BMW Group and for manufacturers in other industries.

In this arrangement, KDDI acts as the global platform layer between the vehicle manufacturer and the domestic network operator. The company said its platform gives BMW Group control over connectivity management and data traffic across the vehicle service environment, while Verizon provides the network connection within the US.

That structure reflects how connected car deployments are often assembled across multiple partners. Carmakers typically need one layer to manage global SIM and service orchestration across markets, and another to provide local network access and coverage in each country.

KDDI framed its role as providing the connectivity management environment needed to support BMW Group's next generation connected vehicle services in North America.

"At KDDI, we are honored to support BMW Group's next generation connected vehicle services with our Global Communications Platform," said Satoshi Oishi, President & Chief Executive Officer, KDDI America. "With over two decades of experience in connected car telecommunications, we understand the critical importance of performance and reliability. Together with BMW Group and Verizon, we are committed to delivering an exceptional connected driving experience to customers across North America."

Connected cars

For telecoms operators, automotive connectivity has become a growing enterprise market as vehicles increasingly depend on persistent mobile connections for software-based services. Those links can support navigation updates, vehicle health monitoring, emergency calling, remote commands, subscription services and data exchange between vehicles and backend systems.

For carmakers, the network relationship also has a practical effect on how digital services are delivered and maintained after a vehicle leaves the factory. A direct embedded connection allows manufacturers to keep connected features active over the life of the vehicle and potentially expand services through software.

The Verizon-BMW-KDDI arrangement focuses specifically on the US market rather than BMW Group's global vehicle base. Even so, it points to the continued shift in the car industry toward region-specific connectivity partnerships, where global automotive brands combine local carrier relationships with cross-border connectivity management platforms to support software-driven vehicle services.

Verizon said the newly manufactured BMW Group vehicles covered by the agreement will use its 5G Standalone and LTE connectivity in the US to support BMW ConnectedDrive and related telematics services.