M2M enabler RACOWireless will work with AT&T Mobility (NYSE:T) to connect the auto makers A3 line of vehicles to LTE, making it the first M2M deal RACOWireless has inked with AT&T. The company also works with U.S. operators Sprint (NYSE:S) and T-Mobile US (NYSE:TMUS).
AT&T announced at the 2014 Consumer Electronics Show that it would be outfitting all Audi A3 cars with LTE despite the fact that the car maker had been working closely with T-Mobile for the past few years to power Audi's Connect service using T-Mobile's HSPA network.
T-Mobile currently uses RACOWireless' platform to connect Audi's vehicles to the company's HSPA network using Audi Connect and that same platform will now be used to connect vehicles to AT&T's LTE network. According to John Horn, president of RACOWireless, the company will support Audi customers that use Audi Connect service through either operator. "We will be supporting both carriers through our portal and call center," Horn said. "We will be supporting both for quite a while. Many thousands of vehicle will have T-Mobile SIMs in them for a long time."
Horn added that he thinks that AT&T has culled together a strong presence in the connected car space. "They have done a great job of creating flexible rate plans," he said.
The deal between RACOWireless and AT&T is significant because it's another Tier 1 operator customer for RACO, which initially was T-Mobile's primary M2M provider back in 2011. A year ago, RACO added Sprint as its second major U.S. operator.
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