Wireless Analyst Jeff Kagan: AT&T is Leader in Connected Car Space

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“AT&T is number one, Verizon number two, Sprint three and T-Mobile four in the new connected car space.” Technology Industry Analyst Jeff Kagan

Jeff KAGAN, Industry Analyst

“AT&T is number one, Verizon number two, Sprint three and T-Mobile four in the new connected car space.” Technology Industry Analyst Jeff Kagan

One of the newest areas of growth in the wireless industry is the connected car space. AT&T is the number one wireless carrier with 8 automakers, Verizon has 4, Sprint has 2 and T-Mobile has 1, according to Reuters, Sept 29.

Industry analyst Jeff Kagan offers comment.

“The connected car is one of the newest, fastest growing and most exciting areas in the wireless industry today. We are still just in the first inning of this new game, but so far US carriers are roaring.” Says Telecom analyst Jeff Kagan.

“Today AT&T is the leader in this new space with twice as many agreements with car makers as Verizon, their nearest competitor.” Says Tech analyst Kagan.

“One reason for AT&T leadership is their network is compatable with other networks globally. That’s one reason why Verizon is falling behind.” Says Technology analyst Kagan.

“Verizon has a good quality network, but that network also limits users in different ways. One example is Verizon Wireless limits users so they cannot surf the web and talk on the phone at the same time. AT&T users can do this.” Says analyst Kagan.

“Churn rates are the lowest in years for all four carriers. That’s good, but companies must focus on increasing growth, not just reducing shrinkage. That’s where growth in this new connected car space is so exciting.” Says Kagan.

Connected cars let users connect their cars to a wireless network and do many things. Users can control car features from their smartphone. Cars can automatically download updates for features like we currently do with our smartphones and computers. Users can surf the web, check email, send text messages and watch movies using features like Wi-Fi.

The Reuters piece says AT&T has developed universal SIM cards for cars, tractors and shipments that are programmed remotely to adapt to networks worldwide.

It also said Verizon must install location specific settings on cars depending on where they are shipped.

“There are many reasons why AT&T seems to be winning this connected car race today. This is a long race and I expect to see competitors really crank it up as soon as they can. This new space could be white hot over the next several years.” Says Kagan.

According to Reuters, it may be 2020 before Verizon Wireless Telematics network is ready and that may be too late for the company to be a meaningful competitor.

Even though Sprint and T-Mobile are smaller, they could still be successful in this space over the next several years.

“The connected car is one hot and rapidly growing space. An important space going forward. So we will watch growth from some of the big brand names, and many smaller and less well known brand names as well.” Says Kagan.

About Jeff Kagan

Jeff Kagan is an industry analyst, consultant, columnist, author, speaker and futurist. He shares his opinion and views in many different ways over 25 years. His goal is to help you better understand our changing world, technology, industry and competition.

He is regularly quoted hundreds of times every year by the media. He writes two weekly columns and a daily press release on companies, technologies, competition and the changing industry.

He offers comment on wireless, telecom, Internet, cable television, IPTV and other tech news stories.

Kagan is known as a Technology Analyst, Tech Analyst, Wireless Analyst, Smartphone Analyst, Telecom Analyst, Telecom Industry Analyst and Principal Analyst.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Companies and Clients: Contact Jeff Kagan to discuss setting up an “analyst briefing” or becoming a consulting client.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Visit his website: at jeffKAGAN.com to learn more.

Full Disclosure: Jeff Kagan is an independent industry analyst. He offers comment to the media on breaking news, announcements, technologies and the changing marketplace. He also writes columns and press releases offering comment, and is an author and speaker. Kagan earns a living as a consultant, analyst, speaker and author.

Twitter: Follow him at @jeffkagan

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