New wave of technology is fuelling the next generation growth for Verizon Communications Inc (NYSE:VZ) and AT&T Inc (NYSE:T). While Verizon Communications Inc (NYSE:VZ) is expanding their Cat M1 networks that are versatile and support a wide variety of applications from water meters to consumer electronics, AT&T Inc (NYSE:T) is at it with IOT team at AT&T Inc (NYSE:T) Foundry in Plano, Texas using LTE-M technology and Bluetooth Low Energy (BLE) hardware for IoT.
With Verizon Communications Inc (NYSE:VZ) controlling 34% of the wireless market in US the pre-emptive lead in IOT and Augmented Reality services and applications will definitely be an advantage. Diversification in to content by acquiring Yahoo and AOL has helped Verizon balance high competition and lowering profit margins in telecommunication and data.
Verizon Communications Inc (NYSE:VZ) Cat M1 is built on a virtualized cloud environment that enables it to scale up service as needed. Verizon Communications Inc (NYSE:VZ) is also actively partnering with industry majors like Sequans, Telit, U-Blox, Sierra Wireless, Gemalto, QUALCOMM, Inc (NASDAQ:QCOM)Technologies to fuel its growth. In the latest quarter Verizon has managed to grow by as much as 358,000 post paid phone subscribers which was mainly boosted with its unlimited data plans. We have to wait and watch if this growth momentum is long term sustainable.
A key barrier for the growth of IOT industry currently is device size and battery requirements. Verizon Communications Inc (NYSE:VZ) has to scale down its expensive customer acquisition and promotion programs. IOT device costs are expected to go down in near future fuelling market boom and increased adaption. Verizon has been able to overcome battery requirements with its 4G LTE, LTE Cat 1 that require less power and offer extended battery life.