Last week, Google and AT&T announced a new partnership that will see the two corporations develop new 5G enterprise solutions. For the telecommunications company, the arrangement will let it demonstrate the capability of its fifth-generation mobile data network. Conversely, the search engine is hoping to acquire more clients for its web services division.
Google and AT&T’s Possible 5G Offerings
In a press release, Google and AT&T detailed their plans to appeal to businesses operating in a range of different industries.
The Mountain View, California-based technology firm wants to work with AT&T to develop a host of high-speed cloud and edge computing solutions. In particular, the corporation intends to use its expertise with artificial intelligence (AI), machine learning, and virtualization to help companies optimize their operations.
Google and AT&T didn’t list any specific products in development, but they did mention transportation, retail, and manufacturing as sectors of interest.
AT&T’S 5G network allows for data transfer rates of 1.2 Gbps with minimal latency. In the past, the telecom noted how its fifth-generation deployment would allow for near seamless vehicle-to-vehicle and vehicle-to-building communication. That suggests both firms will develop a driverless vehicle solution for freight and robotaxi concerns.
Another possible product of this corporate partnership is a new type of smart point-of-sale system. In January, Google purchased a startup called Pointy that made a hybrid ecommerce/physical store sales solution. The firm’s technology created a pathway that allowed retailers to drive web browsing consumers into their shops. With 5G enhancement, the stack could be expanded to include virtual dressing rooms, augmented reality add-on prompts, and cashierless checkout features.
Google and AT&T’s new agreement could also produce robust edge-enabled automated warehouses. The Big Tech firm’s AI could use the telecom’s high bandwidth, hyper-localized network to direct sorting and packing robots to prepare orders with extraordinary speed.
Admittedly, AT&T will need several years to extend its fifth-generation data network across the United States. But the Dallas, Texas-based carrier has made establishing next-generation connectivity in major cities a priority. Since 80.7 percent of Americans reside in cities, the two corporations can address the biggest markets in several industries.
Why Google and AT&T are Working Together
Though not the most obvious pairing, Google and AT&T’s 5G development partnership offers significant advantages for each firm.
Currently, Google derives the bulk of its revenue from its advertising services. However, in recent years the Alphabet subsidiary has taken steps to diversify its holdings. In 2019, the search engine spent $13 billion to build new data centers and offices throughout the United States. That rollout helped the corporation generate $8.9 billion in cloud revenue last year. This year, the conglomerate will spend another $10 billion to expand its footprint further.
Google’s alliance with AT&T will make its increasing multifaceted and expedient web services much more appealing and lucrative.
Conversely, the networking company’s partnership with Google will help it popularize its 5G service among businesses and municipal organizations. Theoretically, the telecom could use its forthcoming edge and cloud products to become a major Industry 4.0 facilitator and smart city utility.
Given their respective resources and specializations, AT&T and Google’s 5G partnership may be one of the most significant corporate synergies of the 2020s.