Connected Car Now a Material Revenue Contributor for AT&T and Verizon

The connected car business now is a material factor for AT&T and Verizon, with AT&T selling billions of accounts and Verizon booking more than $1 billion in annual revenue.

In some quarters, AT&T has been adding nearly a million net new connected car accounts, illustrating one of three potential revenue streams from the connected car business. In 2016, AT&T added more new connected car accounts than phone or tablet accounts.

Aside from supplying the mobile connections, AT&T also hopes to sell data and marketing information to car makers, including location and usage information useful for fleet operators.

Also, temporary prepaid internet access accounts also are viewed as an opportunity for rental car fleets or other scenarios where the driver wants to enable internet access for a vehicle on a temporary basis.

source: S and P Global Intelligence
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