AT&T's Connected Car Business Hits 2 Million Mark, Gains 500k New Adds in Q3 2014

5 October 2014
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AT&T Connected Car and Digital Living Image Credit: AT&T

AT&T's wireless network brings data connection to about 2 million connected cars in the US, including half a million new addition made in the third quarter of this year. These figures were disclosed by AT&T in a filing made to the Securities and Exchange Commission and shared in a recent analyst briefing. According to AT&T, the connected car together with the smarthome solutions, specifically its 'Digital Life' home security services are expected to contribute significantly to its future revenues, adding on to its traditional wireless services for mobile devices. 

These two areas which are part of the wider M2M and Internet-of-Things(IoT) space represent huge growth opportunities for the service provider and also for other wireless operators globally as 4G LTE connectivity enables millions of devices used at home, in offices and in industries as well as a host of 'things' such as vehicles and street furnitures to be connected to each other and to the network. Wireless service providers are expected to see a surge in the use of data by these devices, which most often feature both Wi-Fi and cellular connection options. Fleet management and passenger cars in particular are expected to drive the takeup of cellular connectivity for 'things' as the need for data connectivity increases on the back of newer applications that are being developed for transportation, logistics, safety, usage-based insurance and resource management purposes.

Meanwhile, as for its traditional wireless services, AT&T said that it expects the total take rate for next smartphone upgrade/installment plans to be around 50% while the SIM-only segment is expected to record an addition of 400,000 new accounts for the last quarter. AT&T will be releasing these figures in its upcoming third quarter earnings report.  

Executive Editor of The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Data Innovations 

Tara Neal covers stories on strategies and initiatives in the Digital Telco space, and anchors the 5G and IoT/M2M verticals on the publication. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 20 years experience in technology and business strategy.

Follow her on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at


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