With the postpaid business slowing down, AT&T has turned its eye to the connected devices business, connecting everything from picture frames to dog collars with a cellular signal. It’s a relatively new area that AT&T has been particularly aggressive in pursuing, which has resulted in lower average revenue per user, but higher profits. AT&T added more than 1 million connected devices in the period.

The new rivers of gold, billions of low cost connected devices, low churn, low price, low interest in competition, low bandwidth, low cost of sales, & high margin.