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AT&T to maintain cellular M2M connection lead in th US even as It plans to terminate Its 2G network

AT&T to maintain cellular M2M connection lead in th US even as It plans to terminate Its 2G network

Business news |
By eeNews Europe



Practice director Dan Shey comments, “Several factors contribute to AT&T’s current and expected leadership position in M2M connections. First, it has a dominant position in certain verticals that are expected to grow, several which prefer GSM because of its worldwide presence. Second, it has built competencies in M2M services further up the stack which expand its appeal to a broader set of customers. Finally, as demonstrated by its recent win of the GM OnStar contract, it’s doing a better job selling a vision for key market segments which is exciting OEMs and businesses.”

The 2G cellular M2M connection market still holds a dominant share of US connections and will continue to be strong over the next 5 years. Verizon, Sprint, and T-Mobile are all picking up customers wanting to stay on 2G. But this also presents a dilemma for these carriers, particularly Verizon and Sprint.

“Verizon and Sprint will take all the 2G business they can get but their goal is to move 2G customers to 3G and 4G technologies. The dilemma is how to move dedicated 2G customers to 3G and 4G connections,” adds Shey.

T-Mobile is happiest to pick up more 2G business and in this analysis will experience the highest growth in connections. However, it is less focused on all the end-to-end M2M services, suggesting future revenue opportunities if it adds more value-added services.

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