Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

AT&T, Inc. (T - Analyst Report) has been reportedly planning its expansion in Latin America markets through its collaboration with Leading Latin American telecom carrier – America Movil (AMX - Analyst Report).

AT&T now expects to reach beyond key countries like Mexico and Brazil and establish its presence in countries like Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru and Uruguay. The company already entered into a network sharing agreement with America Movil in Nov 2012, which allows them to expand and enhance networks within Latin America and offshore key markets throughout the world, including growth regions like, Asia and the Middle East.

We believe AT&T’s strategic alliance with America Movil to grow in South America remains reflective of  Verizon Communications Inc.’s (VZ - Analyst Report) intention to step into the Canadian Telecommunication market.

AT&T and Verizon have already achieved significant success in their home ground and are seeking new markets to grow beyond the mature and highly competitive telecom industry in the U.S. However, while AT&T banks on its collaboration with top players like America Movil, Verizon is looking forward to acquisitions, creating a significant threat for three big Canadian companies like TELUS Corporation (TU - Analyst Report), BCE, Inc. (BCE - Analyst Report) and Rogers Communications Inc. (RCI - Analyst Report). Further, Verizon is also considering participation in spectrum auction by the Canadian government.

Coming back to AT&T, although nothing much has been disclosed by the company on its expansion policies or its deal terms with America Movil, it is anticipated that AT&T can also seek to establish itself in Europe through its tie up with the latter.

In Jun 2012, America Movil increased its minority stake in Koninklijke KPN NV (a Dutch telecom company) to 28% from 4.8% and assimilated a 22% stake in Telekom Austria AG, intensifying its foray into the European market. Given America Movil’s growing presence in Europe, we believe it is much likely for AT&T to join forces for invading the European telecom market.

AT&T has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%