AT&T is the latest company and first U.S. service provider to join Ericsson’s 5G startup program, as the carrier looks to identify promising consumer applications for its next-gen network.
The Startup 5G effort leverages Ericsson’s ConsumerLab research and analytical data, along with a roster of more than 40 5G companies, to help operators commercialize and monetize 5G by introducing them to consumer startups and develop go-to-market strategies.
AT&T VP of 5G Product & Innovation Jay Cary called out AR and VR as technologies to utilize.
“AT&T customers are already enjoying the benefits of our 5G network, with fast speeds, low latency and superior reliability. Now the network we’ve built is ready to take on more social and immersive experiences that will transform how we live, work and play,” Cary said in the announcement. “Tapping into Ericsson’s ConsumerLab and its deep catalogue of companies and innovative ideas could help us bring new experiences to life using technology like AR And VR across a variety of interest, including travel and sports.”
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The aim is to explore and identify consumer applications that could leverage 5G, spanning a variety of segments and technology. Service providers Rogers, Etisalat, Telstra and Three Ireland are already involved in the program.
“With access to more than 40 global startups, the program offers AT&T a unique opportunity to not only leverage actionable consumer insights from our Ericsson Research Analytical Platform but also connect with innovation partners to emerge, on top of their existing initiatives and programs,” said Jasmeet Sethi, head of ConsumerLab at Ericsson Research.
Ericsson’s ConsumerLab releases regular research including its 2021 global 5G consumer study. That report involves opinions equivalent to 1.3 billion consumers and 220 million 5G users. Ericsson highlighted a finding 5G users are spending more time on cloud gaming and augmented reality apps versus 4G users.
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For AT&T, the service provider is ready to put its 5G network to use and find applications for consumers to take advantage of the new capabilities. Ericsson estimates there is a $3.7 trillion business opportunity within the 5G consumer market by 2030, which it says the Startup 5G program helps carriers tap into.
AT&T activated C-band spectrum for 5G across eight markets earlier this year and plans to turn on more sites alongside recently acquired 3.45 GHz spectrum. The carrier also has been capturing subscribers with a simplified pricing and aggressive promo and retention strategy, netting 884,000 postpaid additions in the fourth quarter.
Asked on the earnings call what the AT&T brand means to mobile consumers, CEO John Stankey said the carrier plans to start refining brand messaging and focus on characteristics like reliability and consistence, with a clearer definition expected in the mid part of the year.
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While AT&T has been building out 5G, speed performance has somewhat lagged compared to competitors.
In Rootmetrics recent 5G scorecard (PDF), looking at performance in the second half of 2021 across the top 125 cities in the U.S. by population, AT&T didn’t win any awards in the speed category, but scored best for availability in 62 of the markets (versus T-Mobile winning 83 and Verizon taking six) and most reliable 5G in 67 (compared to T-Mobile’s 93 and Verizon’s 19).
Overall AT&T had 5G in 112 of the markets tested and scored speeds between 50-100 Mbps in 28 of them. However, it never surpassed the 100 Mbps threshold for 5G median download speeds.
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In terms of working with startups to find 5G applications, Verizon and T-Mobile have their own efforts to foster companies and an ecosystem, including Verizon 5G labs across the country and one in London, and T-Mobile’s Accelerator Program. T-Mobile opened applications in December for its Accelerator XR program, seeking startups and developers to build immersive 5G experiences for AR glasses.
Beyond consumer applications, like other carriers AT&T wants to capitalize on the enterprise opportunity for 5G. It’s already partnered with Ericsson (which is pursuing its own enterprise-focused push) on offering private network solutions for industry verticals.