AT&T to Maintain Cellular M2M Connection Lead in United States Even as It Plans Shutdown of Its 2G Network

12 Sep 2013

New analysis of the United States M2M Market by ABI Research, finds AT&T is expected to maintain its leadership position in total cellular M2M connections over the next 5 years even though it plans to shut down its 2G network as early as 2017.

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.

The ABI Research report, “US Mobile Operator M2M Market Analysis”, provides a value chain and vertical market review of the trends affecting the cellular M2M business in the US market. Quantitative analysis is provided for past and current M2M connections by air interface technology and by industry vertical. Forecasted cellular M2M connections are provided by industry segment. The report also includes cellular M2M connection and module pricing by industry vertical.

These findings are part of ABI Research’s M2M Services and Modules and Mobile Carrier Strategies Research Services.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

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