AT&T Inc. (NYSE:T) announced its partnership with Sirius XM Radio Inc (NASDAQ:SIRI) to provide mobile connectivity to support a suite of security services for Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201) vehicles in North America.

Sirius XM

Sirius XM Provides Security to Nissan Vehicles

Sirius XM Radio Inc (NASDAQ:SIRI)’s in-vehicle telematics solution will provide 24/7 emergency assistance to owners of Nissan vehicles including support for accidents, stolen vehicle tracking, roadside assistance, and other services.

Glenn Lurie, president of emerging enterprises and partnership organization at AT&T Inc. (NYSE:T), emphasized, “Your future car is going to be a smartphone with four wheels with powerful capabilities specifically built for safe and enhanced customer experience.”

Lurie also said that the vehicles of Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201) integrated with the telematics solution from Sirius XM Radio Inc (NASDAQ:SIRI) powered by the fast, reliable, and built-in mobile internet from AT&T Inc. (NYSE:T) offer a connected experience for drivers and passengers.

Enriquez Rodriguez Expressed Excitement

Enriquez Rodriguez, executive vice president of operations and products at Sirius XM Radio Inc (NASDAQ:SIRI) expressed excitement in working with AT&T Inc (NYSE:T) to provide a world-class telematics service to Nissan vehicles.

In addition, Rodriguez emphasized, “SiriusXM is the leader in subscription services to the car and our network provides ubiquitous coast-to-coast delivery of our unparalleled audio entertainment and information services. As we move into a connected vehicle world, SiriusXM will provide a telematics service that will offer Nissan vehicle owners a comprehensive set of telematics, information and entertainment services in their vehicle.”

Sirius XM Radio Inc (NASDAQ:SIRI) is combining the capabilities of satellite and cellular networks to expand the features of its telematics solution for customers. According to the company, the combination of networks allows Sirius XM to take advantage of both one-to-many and one-to-one network connectivity.

Sirius Contract Seen as a Big Win

AT&T Inc (NASDAQ:T) is one of the leading providers of a wide range of connectivity services for companies offering telematics solutions for different vehicles worldwide. According to the telecommunications carrier, it has provided world-class connection, M2M device support, and professional services to a number of device manufacturers and exporters of wireless-enabled equipment globally.

Last April, Citi Research analyst Jason Basinet believed that Sirius XM Radio Inc (NASDAQ:SIRI)’s contract to provide telematics solutions for Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201) is a big win, and it might become a key OEM supplier of telematics over time. He also opined that a transformative acquisition is unlikely for Sirius XM because it involves a large sum of money, which could dilute the FCF per share of the company.