AT&T’s (T) foray into the Android cell phone market is set to begin as the largest telephone company in the US has announced its plan to sell devices based on Google’s (GOOG) Android platform. The company expects to unveil five new smartphones from handset vendors including Dell (DELL), Motorola (MOT) and HTC in first-half 2010. AT&T will be the first US carrier to market Dell’s new “Mini 3″ smartphone.
Android-based smartphones have generated significant buzz in recent times. Although a little late to join the party, AT&T has finally jumped on the Android bandwagon joining Verizon (VZ), Sprint Nextel (S) and T-Mobile USA, the US unit of Deutsche Telekom (DT). Verizon and Sprint market Droid and HTC Hero, respectively, while T-mobile USA is offering G1, myTouch 3G and new Nexus One.
AT&T, which currently markets Apple’s (AAPL) iPhone exclusively in the US, is looking for additional means for growth and to remain competitive in the US smartphone space. With AT&T’s entry into the Android market, all four big US carriers will offer phones running on the Android platform.
iPhone has been a source of strength for AT&T which continues to boost its wireless business. Its sales soared in third-quarter 2009 spurred by the record activations of 3.2 million new users, thanks to the new iPhone 3GS. However, AT&T’s agreement with Apple for iPhone is set to expire in 2010. While the company is expected to renew the contract, it desperately needs to expand its handset range to withstand emerging competition. Google’s new ‘Superphone’ Nexus One promises to be a major threat to iPhone.
In addition to the Android phones, AT&T will also introduce two devices from Palm (PALM). Moreover, the company is extending its 3G wireless capabilities from smartphones to a wide range of emerging devices (including netbooks and electronic book readers) to expand the market penetration of its 3G data services.
AT&T has reportedly doubled its 3G network speeds (by deploying the HSPA 7.2 technology) to address the increasing high-bandwidth demand for advanced data applications enabled by the state-of-the-art handhelds. The upcoming Android devices will effectively complement one of the fastest 3G networks currently available in the US.
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