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Premium Connectivity not working without smartphone?

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Received my Model Y last week and it displays that it comes with one year free Premium Connectivity. However, every time I'm in the car if I turn off my iPhone's wifi the radio stops working and there is no connection. I have to turn my iPhone's wifi on for it to work. Am I missing something here? Isn't Premium Connectivity suppose to be active regardless of my smartphone?

Thanks for the insight.