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I’m using paid WiFi subscription for couple of days now. Now cuts whatsoever. It works perfectly.
I think there might be a problem on the phone side that when it’s using a WiFi (but without subscription to a provider), it has to use cellular network at the same time to connect to the internet (because WiFi is used only for CarPlay). I believe iPhone have a problem to handle that.
If the whole connection is done through WiFi (with the car AND internet) it’s better handled by the phone. We all blamed BMW but I think most of CarPlay issues are Apple issues.
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