AT&T thinking outside the cell phone

by Joe P on July 9, 2009

The U.S. wireless industry is seeing a slowing of the torrid growth it realized over the past decade. This is part because of the recession, but also part because the penetration rate is reaching the saturation point. With so few new customers to add — that is, customers who aren’t coming over from another wireless service — companies have to get innovative in order to continue growing. Some think that will come with the expansion of mobile broadband, but revenues in that arena may slow this year, too. This has been especially trying for AT&T, which also relies on rapidly shrinking wireline services for revenue. They’re not just sitting back and letting things happen, though. They’re trying to pick up on the next big thing in wireless.

Roger O. Crockett of BusinessWeek takes a look at the newest group within AT&T: Emerging Devices. Headed by Glenn Lurie, the man who managed the AT&T - Apple relationship, the group’s purpose is to identify ways people can use wireless Internet, and in specific mobile broadband on AT&T’s network, in ways they do not currently. Right now mobile broadband is thought of as a data transfer mechanism for smartphones and, more recently, netbooks. AT&T believes that there is room for many other devices.

These devices include some obvious ones, like electronic book readers and digital cameras, to ones which can alert drivers to traffic congestion in real time. There was even talk of a device which allowed drivers to alert fellows to speed traps. That sounds like as good a use as any for the wireless Web, though the police might have something else to say about that.

“Mobile broadband is where the growth is going to come from,” said Randall Stephenson, CEO of AT&T. “And we don’t think we are even scratching the surface yet.” That’s only a good thing. Of course, hooking up so many gadgets to AT&T’s network, in addition to smartphones and netbooks, will require a lot of bandwidth. Just Google AT&T network overload and you’ll see that they have enough problems with their existing network. So not only will AT&T have to invest in this Emerging Devices group, but also in a stronger network on which to host the devices. Of course, LTE, which AT&T plans to deploy in 2010 or 2011, could be a big help in itself.

This appears to be the future, not just of wireless, but of electronic devices. Everything in your home will connect to the Internet sooner or later. It’s good to see AT&T actively pushing forward in that regard.

Filed under : AT&T