AT&T has managed to snag a contract to provide connectivity for General Motors’ OnStar service beginning in 2014. Competitor Verizon Wireless is the current provider for OnStar.  

While financial details of the deal were not announced, AT&T said in a statement that the multi-year agreement calls for AT&T to enable “millions” of GM vehicles. AT&T will also enable GM’s in-vehicle Wi-Fi hotspots and voice calling services. 

Beyond connectivity, AT&T and GM said the two companies will work together to develop “new communication applications for the vehicle designed to deliver more efficiency while also enhancing the driving and riding experience.”

GM is previewing a series of conceptual connected services at Mobile World Congress this week in the AT&T-sponsored area of the Connected City. 

The annoucnement comes as a bit of surprise, as Verizon has been a very public partner in the development of the Cadillac CUE system, which was unveiled last year at the annual Consumer Electronics Show (CES).

ABI Research estimates that the installed base of embedded and hybrid connected car systems is expected to grow from 45 million at the end of 2011 to 210 million by 2016.