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August 07, 2018
AT&T’s CFO promises 5G will grow wireless revenues

AT&T’s CFO said that the carrier’s move to 5G network technology will create opportunities for the company to generate new revenues. The statements are noteworthy considering AT&T has raised its spending on its network dramatically this year as it works to switch on new spectrum bands and launch roughly a dozen 5G markets before the end of 2018.

“As we continue to do 5G Evolution, and then lead in 5G, we believe we will see additional opportunities for growth and revenue streams that will only improve our situation,” said AT&T’s CFO John Stephens this morning during an appearance at an investor relations event. “Specifically, things like augmented reality, virtual reality, the internet of things, the ability to continue to service our business customers and provide them new services, whether it’s playing in the healthcare industries and helping deliver healthcare services or a whole host of other entertainment services.”

AT&T has branded hundreds of markets as “5G Evolution;” the carrier argues such markets contain network technologies like carrier aggregation that pave the way for a full 5G launch. And AT&T has said that it will deploy mobile 5G services later this year in a dozen markets including Charlotte and Raleigh, North Carolina, Oklahoma City, Dallas, Atlanta and Waco, Texas.

The vast majority of 5G use cases are around facilitating increased personal usage of a smartphone plan. It makes complete sense for an operator and Augmented Reality as you will see in previous posts is a massive consumer of data. Interestingly AR is likely to be used 75%+ of the time on a cellular network vs. a WiFi network. Why such a high percentage; look at all the use cases of being on the go and outside; and therefore not on a WiFi network. We do agree that there will be some WiFi usage most likely in a store as part of a next generation in store experience; but we cringe at the thought of that amount of data going down a corporate WiFi network.

AT&T’s CFO promises 5G will grow wireless revenues