AT&T's proposed acquisition of T-Mobile USA Inc. for $39 billion still needs to clear regulatory hurdles, which leaves unanswered questions for the future. These questions deepened Monday when it was announced that RACO Wireless would remain the preferred M2M service provider for T-Mobile USA, and that John Horn, the national director of M2M for T-Mobile USA, would be leaving to serve as president at RACO Wireless, and bringing along most of his M2M staff.
Horn insists that his move to RACO Wireless has nothing to do with the possible pending acquisition and said that RACO Wireless will continue its long-term support of 2G within T-Mobile USA. This raises further questions about the future of 2G modules, which make up 90 percent of the B2B M2M market.
AT&T has lately promoted 3G and 4G modules with its Smartphones, and according to industry analysts who follow the M2M sector such as Beecham Research, it was only late last year that AT&T made exclusive deals with 3G module suppliers such as Ericsson, Huawei and ZTE.
T-Mobile USA, on the other hand, has been in the M2M market since 2003, and has stuck to supporting 2G technology. Horn made it clear that 2G technology continues to represent 90% of M2M deployments, and that he and his team at RACO Wireless would continue to support 2G connectivity.
Horn refused to comment on the acquisition, but did state that RACO Wireless will continue to operate with T-Mobile under a long-term contract.
Historically, network infrastructure is the most expensive component in a mobile operator's overall CAPEX, which holds true in China, the biggest and fastest growing 4G market in the world. This report provides an in-depth overview of market revenue, equipment shipments, and the competitive landscape for carriers. Buy now