This story was delivered to Business Insider Intelligence Apps and Platforms Briefing subscribers hours before appearing on Business Insider. To be the first to know, please click here. Six months after AT&T teamed up with Magic Leap, a cutting-edge AR headset startup, to become the sole US wireless carrier for the company's headsets, the firms have announced the expansion of this partnership, according to a company statement. The two firms will now work together on business solutions, placing their initial focus on manufacturing, retail, and healthcare. More specifically, AT&T will provide connectivity for augmented reality (AR), mixed reality, and spatial computing business applications over its 5G network. What are some business solutions that could come out of this partnership? AT&T's move to add connected headsets to its list of offerings is opening up the US carrier to significant revenue opportunities. It's estimated that 1.75 million stand-alone VR and AR headsets were shipped in 2018, according to IDC. This figure is expected to skyrocket to 33.7 million units by 2022, giving AT&T a direct line to a lucrative market: The global subscription market for stand-alone AR and VR devices could be worth $337 million in 2022, according to Business Insider Intelligence estimates. While these figures should be enough for any telecom to go after the connected stand-alone headset market, this sentiment only gets bolstered when taking enterprise solutions into account.Business Insider Intelligence expects worldwide enterprise VR hardware and software revenue will jump 587% to $5.5 billion in 2023, up from an estimated $800 million in 2018. As such, not only did AT&T diversify its revenue sources by entering into the initial partnership with Magic Leap, but this expansion has taken that to a whole new level. Other carriers should take notice by strengthening their VR and AR solutions and partnerships.
US telecommunications company AR is extending its collaboration with augmented reality (AT&T) technology start-up Magic Leap to cover business solutions. Following a July 2018 agreement to make AR the sole US wireless carrier for the start-up's AT&T headsets, the two firms will now also work together on manufacturing, retail and health care, where the service provider will offer connectivity for AT&T, mixed reality and spatial computing over its 5G network. Shipments of AT&T and virtual reality headsets are expected to shoot up from 1.75 million units in 2018 to 33.7 million in 2022, meaning significant potential revenue for both companies.