Wireless news in the US, this week (Nov 24)

US Telecom & Smartphone Market Briefing - November 2024

Key Themes:

• Shifting landscape in the US telecom market: AT&T's strategic moves (NB-IoT shutdown, UScellular acquisition) and the proposed T-Mobile/UScellular merger point to a rapidly evolving landscape, potentially driven by spectrum scarcity and the need for network optimization.
• Apple's continued dominance: Apple maintains its stronghold on the US smartphone market despite shrinking overall market size, showcasing brand loyalty and consistent performance. 
• Google's struggles: The potential merger of Android and Chrome OS signals a need to compete more effectively against Apple's iPad. Additionally, the reported abandonment of the Pixel Tablet highlights difficulties in delivering a compelling Android tablet experience.
• Evolving 5G landscape: The declining value of mmWave spectrum, evidenced by T-Mobile's relinquishment and UScellular's write-down, underscores the limitations of this technology. 

Important Facts & Insights:

AT&T:

• NB-IoT shutdown: AT&T is discontinuing its NB-IoT network in Q1 2025, migrating users to LTE-M for greater data capacity. This suggests a focus on higher-bandwidth IoT applications. 
• UScellular acquisition: AT&T is acquiring $1B worth of 700MHz and 3.45GHz spectrum from UScellular. This move likely aims to bolster its 5G network capacity and coverage, particularly for demanding use cases like connected cars. 
• Turbo service indicator: AT&T has introduced a "Turbo" indicator in the phone status bar for subscribers of its premium network prioritization service. 

T-Mobile:

• mmWave spectrum relinquishment: T-Mobile is giving up mmWave spectrum licenses in areas where deployment is "not feasible". This decision reflects the challenges and limited applicability of mmWave technology for widespread 5G coverage. 
• Potential UScellular merger: The proposed merger with UScellular is under scrutiny for potential foreign security risks due to T-Mobile's majority ownership by Deutsche Telekom. This deal could face regulatory hurdles. 

Apple:

• Dominates US smartphone market: Apple continues to dominate the US smartphone market with a 53% share in Q3 2024, although its shipments declined 5% YoY. 
• Global mmWave strategy: The new iPhone 16 models only offer mmWave 5G in the US, suggesting limited international adoption and a potential focus on mid-band and low-band spectrum globally. 

Google:

• Android and Chrome OS merger: Reports indicate Google's plans to merge Android and Chrome OS to create a more unified platform, potentially aimed at competing with the iPad. 
• Pixel Tablet abandonment: Google is reportedly ending the Pixel Tablet project after one more iteration. This highlights the company's ongoing struggles in the tablet market and its inability to deliver a successful high-end Android tablet experience. 
• Antitrust concerns: The DOJ is seeking to force Google to separate Chrome and Google Search from Android due to antitrust concerns. This could significantly impact Google's mobile strategy. 

Other:

• DIRECTV-EchoStar deal termination: DIRECTV has terminated its agreement to acquire EchoStar's DISH video distribution business due to the rejection of EchoStar's debt exchange offer by DISH noteholders. This highlights the financial complexities and uncertainties in the pay-TV market. ("DIRECTV Announces Termination of Agreement to Acquire EchoStar's Video Distribution Business")

Thank you for listening!
-Mario Mejia