T-Mobile Bolsters Its Edge Computing Offering With Google Cloud Deal

Almost every business is digital, but market leaders are embracing digital acceleration by fast-tracking their ability to put data into action. Technologies such as cloud computing, AI, and 5G are at the heart of delivering next-generation data experiences, but adoption hasn’t been easy. After many debates about the merits of public cloud computing services, enterprise adoption became more nuanced, with companies deploying a mixture of public, hybrid and private cloud services. A similar discussion is occurring today as companies look to create a more comprehensive connectivity stack that includes wireless broadband, with the latest darling being 5G networks.

Edge computing and 5G deliver an infrastructure foundation that helps companies analyze and act on data closer to where it gets generated. 5G’s low latency, higher speeds, and reliability appeal to organizations that want to support new use cases such as remote equipment monitoring, connected manufacturing, and autonomous vehicles in warehouses. It also supports AI-powered use cases such as computer vision for security in venues, shelf stock-out alerts in retail and defect detection in manufacturing.

Telecom and Cloud Providers Jockey For A Winning Position In Fast Growing Edge Market

According to Grand View Research, the global edge computing market is projected to reach $155.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 37.9%. Edge computing resembles the hypergrowth of cloud computing several years ago. Hence it makes sense that hyperscalers and telecom providers would partner to deliver end-to-end edge-to-cloud services that connect networks and compute.

After all, telcos have many central offices that can act as data centers to place edge computing closer to the enterprise. Service providers also bring a wide range of wired and wireless connectivity solutions to the table. Meanwhile, enterprise cloud service buyers are looking for ways to extend the functionality of public cloud services into a more controlled on-premises environment that blends the best of private and public cloud services. To address these needs, the major cloud computing providers offer fully managed solutions that deliver cloud infrastructure and services to virtually any on-premises or edge location for a consistent hybrid experience.

What’s missing is a coordinated edge-to-cloud program that allows companies to bridge the gap between 5G capabilities and edge computing technology to support new applications and services. One way to address this is via partnerships between various service providers.

T-Mobile and Google Cloud Partner to Support New Edge Use Cases

T-Mobile and Google Cloud recently joined forces in a partnership combining the capabilities of T-Mobile’s 5G Advanced Network Solutions (ANS) with Google’s Distributed Cloud Edge (GDC Edge). T-Mobile announced 5G Advanced Network Solutions (ANS) in May 2022. It is a suite of technologies and solutions provided by T-Mobile to enhance and optimize its 5G network infrastructure for performance, capacity, and coverage. It’s working with Dell Technologies, Ericsson and Nokia to deliver 5G ANS. T-Mobile utilizes the mid-band spectrum, specifically the 2.5 GHz frequency, to provide faster data speeds and broader coverage than higher frequency bands.

T-Mobile also deploys Massive Multiple-Input Multiple-Output (MIMO) technology, which uses multiple antennas to transmit and receive signals simultaneously. MIMO boosts network capacity and improves signal quality, leading to faster and more reliable 5G connections. Additionally, T-Mobile’s ANS incorporates Extended Range 5G to provide wider coverage and better penetration through obstacles by utilizing lower frequency bands (also known as low-band 5G). The combination of a portfolio of wireless solutions aims to ensure a consistent 5G experience across urban and rural areas.

Telecom companies around the globe, including T-mobile, are adopting network virtualization techniques to enhance flexibility and scalability by dynamically allocating resources and optimizing network performance based on demand. The goal is to deliver efficient, cost-effective operations. In the 5G area, service providers plan to offer network slicing, which allows the creation of multiple virtual networks within a single physical infrastructure. T-Mobile’s ANS will use network slicing to tailor network resources and performance characteristics to specific use cases or industries, providing customized experiences for different applications and services.

Distributed Cloud Edge is a solution offered by Google that allows users to run Google Kubernetes Engine (GKE) clusters on dedicated hardware provided by Google, separate from their traditional Google Cloud data center. Google installs and maintains the hardware on the user’s premises and deploying workloads on Distributed Cloud Edge is similar to that of cloud-based GKE clusters.

Google controls remote monitoring and maintenance of the Distributed Cloud Edge installation, including software updates, security patches, and hardware diagnostics. Distributed Cloud Edge addresses specific scenarios where conventional Google Cloud deployments may not be sufficient such as applications that need stable network connections, low latency and compliance with local data storage regulations. It also allows companies to blend the benefits of cloud and on-premises solutions.

Building the Foundation for Enhanced Applications

Combining T-Mobile’s ANS and Google Cloud’s Distributed Cloud Edge will bring computing resources closer to the network edge, reducing latency and enabling real-time processing for applications and services. This partnership aims to help enterprises across various sectors, including retail, manufacturing, logistics, and smart cities, unlock next-generation applications like augmented reality (AR), virtual reality (VR), and connected robotics.

For example, manufacturing companies can leverage computer vision technology to enhance safety protocols by continuously monitoring equipment and promptly notifying support personnel in case of any issues. Similarly, municipalities can deploy augmented reality (AR) to ensure worker safety by remotely performing hazardous tasks using machines.

To showcase the potential of 5G ANS and GDC Edge in a retail setting, T-Mobile and Google Cloud collaborated on a proof of concept called the “magic mirror.” Users can access interactive videos, product details, and additional information in near real-time by simply holding a product in front of the mirror. This interactive display at T-Mobile’s Tech Experience 5G Hub utilizes cloud-based processing and edge image rendering to create an immersive retail experience.

This announcement comes hot on the heels of another announcement with Amazon Web Services (AWS) in February, where the companies will pair 5G connectivity with AWS compute solutions. The companies will also collaborate on customizable, use case-specific offerings as part of the new Integrated Private Wireless on AWS program. These offerings help businesses get the performance and applications they need for their unique use cases – for example, monitoring worker safety on remote industrial campuses, performing predictive maintenance on manufacturing equipment or ensuring faster aircraft turnaround times at the airport.

T-Mobile NewsroomT‑Mobile and Amazon Web Services Join Forces on 5G Advanced Network Solutions ‑ T‑Mobile Newsroom

Enterprise Services Represent a Growth Opportunity for T-Mobile

Simply put, the edge cloud matters to T-Mobile because the enterprise market represents a significant growth opportunity for the service provider. At a previous investor analyst day, T-Mobile discussed its goal to reach over 20% market share in the enterprise and government space by 2025. While it’s not disclosing actual numbers, the company says it’s on track.

During the Q1/23 earnings call, Callie Field, the President of the T-Mobile US, Inc Business Group, said: “We’re making very nice progress towards doubling our market share. We’re growing in customers and revenue. And we’re taking share from AT&T and Verizon. In fact, in Q1, as Mike mentioned in his opening remarks, our business account growth, our phone net adds, and our phone churn were all better than Verizon. In Enterprise, we were selected to be the exclusive partner nationwide for AAA to develop roadside connectivity using partners like Dialpad with a collaboration tool and in our phone solutions. Siemens Energy selected T-Mobile, their exclusive partner, UPS, Oracle, Vail Resorts.”

She also shared that in the government space, the Veteran Affairs selected T-Mobile, over AT&T, as a primary partner for nine years with over 50,000 phone lines and the opportunity to create healthcare 5G solutions. Other carriers claimed T-Mobile may have won the VA deal by offering discounted services. However, T-Mobile’s CFO shared that the VA deal offered solid margins with potential upside for new connected device use cases during the BofA Securities C-Suite TMT Conference.

Companies that were not previously considering T-Mobile are giving them a look and it’s not just for price. Perhaps it’s the network. Maybe it’s the desire to cultivate a strong alternative to AT&T and Verizon in the business market. Different enterprise buyers will have different motivations, but what is clear is that teaming up with leading cloud computing providers, such as AWS and Google Cloud, can only make T-Mobile’s offerings more compelling to enterprises.