Feature: US operators facing 5G vehic…

An AT&T 5G connectivity deal with Toyota Motor North America turned the spotlight on the US connected vehicle sector at a time when it faces regulatory, geo-political and old-fashioned radio challenges.

The US operator wasted little time in finding use cases for its 5G infrastructure after completing a nationwide deployment. Its deal with Toyota focuses firmly on the vehicle company’s own range of connected services, spanning infotainment, safety functions, servicing, and cloud, remote access and Wi-Fi connections.

AT&T promises “enhanced integrated audio streaming, a reliable Wi-Fi hotspot”, real-time navigation, remote services and OTA updates, along with access to SiriusXM content.

While it is undoubtedly a useful win for AT&T just after its 5G coverage achievement, the focus on connectivity alone masks some of the problems facing all US operators and automotive players.

These issues matter, given Verizon and T-Mobile US are each just as active in the automotive space as AT&T.

Verizon, for example, unveiled its latest cellular vehicle-to-everything (V2X) connected driving platform in June, with T-Mobile actively promoting its 5G network as providing a fast lane to a next-level of vehicle connectivity.

The Edge Transportation Exchange Verizon launched was demonstrated in conjunction with the 5G Automotive Association (5GAA) and counted Volkswagen Group of America and various transport authorities among initial users.

At the time, Verizon Business VP of Strategic Connectivity and IoT Shamik Basu said the exchange uses the growing range of software featured in vehicles to help manufacturers and relevant authorities plot how mobile technologies can be used in future transport situations.

Verizon’s approach employs LTE along with 5G, mobile edge compute and geolocation technology. The operator heralded various other benefits including cost reductions stemming from a decline in the number of roadside radio units required.

T-Mobile is targeting its 5G capabilities at a broad cross-section of the automotive opportunity, with a heavy tilt towards the potential in emergency service scenarios along with those relating to the vehicles themselves, customers and factories.

In an article on how 5G could drive the next wave of vehicle connectivity, T-Mobile explained the mobile technology stands to benefit safety, performance, efficiency, convenience and entertainment.

T-Mobile noted 5G may help overcome obsolescence in systems fitted to vehicles when they are made, improve data analysis and employ network slicing capabilities for a host of dedicated functions.

If all three major US operators already have the wheels in motion for vehicle connectivity and platforms, why does the situation in the market remain uncertain?

Driving instructions
Ironically, efforts to free up more spectrum for operators is one key issue.

The Alliance for Automotive Innovation (Auto Innovators) is a body which represents all elements of the US industry including manufacturers, equipment suppliers, battery producers, semiconductor and technology companies, and autonomous vehicle developers.

In a blog published earlier this year, Auto Innovators president and CEO John Bozzella noted spectrum sale plans included in President Donald Trump’s One Big Beautiful Bill could jeopardise wireless safety technology embedded in “millions of vehicles”.

Bozzella explained vehicle manufacturers are “investing heavily in wireless connectivity and use ultra-wideband” (UWB) spectrum in the 6GHz to 8.5GHz band for a host of features.

Auto Innovators argue this is a prime location in the wireless world, one which politicians and other industries “want turned over to other technologies”.

There is a broader push around releasing the upper 6GHz band to the mobile industry due to its potential to bolster current 5G networks and lay a foundation for future 6G technology.

But vehicle makers employ UWB in collision avoidance radar, remote parking, real-time positioning and digital keys enabling phones to be used to access vehicles.

The automotive industry has longer lead times than the mobile sector, so any change is going to involve patience and potentially a period of co-existence while current equipment serves out its time.

Bozzella was optimistic on a plan to exclude frequencies between 7.25GHz to 8.4GHz from auction plans and called on politicians to ensure this stretch, at least, is protected.

Auto Innovators is also collaborating with the CTIA to develop policies each industry believes would be workable.

In a report on the importance of 5G to the automotive sector issued in 2024, the CTIA pressed politicians to “continue to provide access to full-power licensed spectrum for the deployment of wide-area networks”.

It stated vehicle manufacturers are “first movers” in terms of employing 5G as they seek to hike the capacity and rate of data transmissions for navigation and infotainment systems, along with ultra-low latency which “eliminates lag and delays when split seconds matter”.

The latest mobile technology “will help a vehicle automatically share crash information” with emergency services, or help drivers “respond to real-time routing and weather information”.

It emphasised 5G would be a key element in traffic management systems, providing “valuable information about a vehicle’s surroundings” and noted a broad push to use the technology to make “roads, vehicles and communities safer”.

The CTIA listed a host of examples of how AT&T, T-Mobile and Verizon are working with the automotive industry on vehicle developments, highlighting how entwined the sectors now are.

Chipping in
Auto Innovators separately noted geo-political challenges remain a factor in the US vehicle market.

In August, SVP of policy Hilary Cain highlighted the semiconductor supply chain is still an area of concern.

Cain explained in a blog an average car today contains more than 1,700 chips and highlighted problems in the supply chain experienced during the Covid-19 (coronavirus) pandemic to show the seriousness of any disruption.

The executive argued the automotive chip supply chain “remains fragile”, putting developments including advanced driver assistance systems at risk, along with other critical in-vehicle systems.

Cain noted the US automotive industry remains heavily reliant on non-domestic production of vehicle-grade semiconductors, though wrote home-grown alternatives are beginning to gain some traction.

Bumpy road
Another factor which could come into play in operators’ connected vehicle goals is regulation.

In a response to a call by the US Department of Justice for information on state-level laws which could impact the overall national economy, Auto Innovators argued the case for a single set of rules.

It noted various US states have implemented or plan to enact legislation which could force manufacturers to adapt their vehicles to individual rules but argued such approaches are impractical, not least because people often drive into other regions.

Auto Innovators gained support from politicians for a proposal to make nationwide rules enabling location tracking to be disabled to help protect victims of domestic violence, a move likely easier for operators to implement instead of one involving individual states.

There is also what Auto Innovators described as a “patchwork” of frameworks for autonomous vehicles, something it warned could “harm the global competitiveness” of the US industry.

The group pointed to requirements to fit specific data recording capabilities and two-way communication functionalities as among the challenges, calling for the Department of Transportation to update national standards to include autonomous vehicles.

Despite the challenges, growth predictions for the overall connected car industry indicate it is worth US operators staying the course.

In 2024, speciality research company Towards Automotive noted 5G technology was already “at the forefront of the connected car revolution” and predicted global revenue for the sector would hit $167.5 billion by 2034, compared with an expected $49.5 billion this year.

It forecast the US alone would generate a CAGR of 12.7 per cent over the forecast period, as safety initiatives fuel demand for vehicle-to-vehicle connectivity and more IoT technologies are brought in.