In the dynamic world of technology, things change so fast so that if a company focuses too much on something and overlooks innovation, that company is highly likely to trail its competitors. And Verizon Communications Inc. (NYSE:VZ) could be that company. Its biggest rival AT&T Inc. (NYSE:T) has forged new partnerships with auto companies for the fast spreading connected cars technology more that it has been able to do.
Many market observers believe that connected devices is the next big thing. It all began with smart home devices that enable users to have control of home devices even when they are away. One would easily open a door for a guest without having to be physically available, switch on the heater a few minutes before getting home, and more.
For the auto industry, some cars can now be turned into Wi-Fi hotspots, users have the ability to control the car without having to be next to it, and the ability to update car firmware without necessitating recalls.
These are the big things that many wireless service providers are focusing on for that extra revenue, and AT&T Inc. (NYSE:T) has done well, now having 8 deals with automaker brands. Verizon Communications Inc. (NYSE:VZ), the U.S. largest wireless service provider, is trailing AT&T Inc. (NYSE:T) with only 4 deals. What’s even more worrying is that the standards implemented by Verizon Communications Inc. (NYSE:VZ) are limited to specific countries while AT&T employs global standards that can be used almost anywhere in the world.
AT&T Inc. (NYSE:T) has also availed a universal SIM card for vehicles, allowing for remote programming to adapt them to unique networks. Verizon Communications Inc. (NYSE:VZ) trails here as well with location specific settings having to be installed based on where the car is to be shipped to.
Moreover, the standards implemented by Verizon Communications Inc. (NYSE:VZ) puts it at a disadvantage compared to AT&T Inc. (NYSE:T) since most of the major automakers prefer services that function worldwide.
This article has been written by Victor Ochieng.