Feature Article

February 28, 2013

AT&T Eyes European Expansion

AT&T, one of the leading phone companies in the United States, announced on Tuesday that the company will expand into the European market through mobile licenses for its home security products.

“We hoped two or three (businesses) would be interested and actually a lot more than that were; it was unbelievable,” Glenn Lurie, president of emerging devices for AT&T, said in a story seen on Bloomberg. “We’re back this year signing deals, talking to carriers. We’re going to announce a full international business for Digital Life.”

The company looks for new areas of growth separate from its wireless service. With AT&T’s Digital Life product, which allows customers to protect their homes from burglary and other dangers all from their mobile device, AT&T has become more of a technology company in order to increase growth in revenue after its wireless service revenue has dwindled.

Randall Stephenson, CEO, was reported saying that the company was considering international partnerships last month as the company reported its lowest annual growth rate since 2010.

This news comes shortly after AT&T won a deal to become General Motors new service provider for OnStar starting in 2014. Although financial details were not announced, many skeptics believe that the switch will lead to more money coming from the customer’s pocket.

“I’m worried that video over LTE to a car (over cellular and not Wi-Fi) could mount up some big bills,” said Matt Hamblen in his blog regarding the deal. “A single HD movie can run 3GB, which can mean the wireless cellular cost just to access that movie could cost $30, an entire month’s smartphone cost under an individual AT&T data plan.”

According to WirelessWeek, ABI research estimates that the installed base of embedded and hybrid connected car systems is expected to grow from 45 million at the end of 2011 to 210 million by 2016.

Edited by Brooke Neuman

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