AT&T Has a Confusing Definition of 4G, But Strong Device Lineup

Event Summary

January 5, 2011 - AT&T is rebranding its HSPA+ network as “4G” and accelerating the expected completion of its upcoming LTE network to 2013. It will launch 20 “4G” devices in 2011, including three Android 2.2 phones in Q1 (Motorola’s ATRIX 4G, HTC’s Infuse 4G, and Samsung’s Inspire 4G), and two tablets. An LTE tablet will be available in H2 2011. No pricing was announced.

Quick Take

Analytical Summary

• Current Perspective: Positive on AT&T’s CES device and network announcements, because by confusing the term “4G” and accelerating the expected completion of its LTE network rollout, AT&T effectively defuses the 4G marketing bomb thrown at it by Verizon Wireless, Sprint and T-Mobile. By launching a slew of high end Android phones, AT&T insulates itself somewhat, should the Verizon Wireless iPhone rumors turn out to be true. Motorola in particular needs to broaden its carrier base beyond an over-reliance on Verizon Wireless, and acquits itself nicely here with an innovative phone and notebook-like companion.

• Vendor Importance: Very high to AT&T, as it looked like Verizon Wireless might badly beat AT&T to market with a nationwide LTE network, and AT&T was facing a barrage of 4G advertising from rivals. T-Mobile has even taken to doing Mac vs. PC –style ads poking fun of AT&T’s “3G” network; since both carriers are now calling their HSPA+ networks “4G,” AT&T can now claim that T-Mobile’s ads are false. A stronger Android lineup also helps AT&T, Motorola, Samsung and HTC counter the prospect of a potential Verizon Wireless iPhone, should one materialize.

• Market Impact: High on smartphones and personal connected devices, because this is some real innovation – particularly with Motorola’s ATRIX 4G computing accessories, which turn the phone into a desktop PC or notebook, and the upcoming Android Honeycomb tablet.

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