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The two companies announced a collaboration to look into building LTE connectivity into drones.

LTE connectivity for drones is seen to largely affect the commercial drone sector (Image: Statista)
Cellular networks have put a lot of money into LTE, a faster wireless standard that can carry both voice and text, allowing it to eventually replace older 2G technology that is still relied on for voice services. These networks also want LTE to play a role in the future of the Internet of Things, for which new wireless standards have now cropped up. However, the uses for LTE do not stop there. AT&T has now announced a partnership with Intel to test drones connected to the US telecom's LTE network. If implemented widely, this could greatly extend the use of drones. They could be operated beyond line of sight, though regulations in the US currently prohibit this. Without being tethered to a local network, drones can also relay video from a greater distance. AT&T is looking at how video streaming is impacted at higher altitudes.
While LTE networks are faster than 3G wireless standards such as HSPA, they still do not match Wi-Fi networks connected to speedy landline Internet services. With this in mind, video streaming would take a big hit, assuming it works well at all. This is not likely to be a solution for drone racers, but it makes sense for commercial industries using drones for things such as agriculture or delivery. HD video streaming is not an important element of drones used in those areas.
Intel has been investing aggressively in drone technology, according to Reuters. This makes sense given growth in the industry. The commercial drone sector especially has a lot of potential since regulations in some places have started making it easier for this kind of activity. AUVSI estimates the economic impact of commercial drone activity could be $5.1 billion by 2025, up from $1.2 billion in 2015. Carriers including AT&T want a piece of this. China suppliers have been getting into commercial drone production for the same reason. DJI announced an agriculture drone recently, recognizing it was missing out on a good opportunity.
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