Back to top

Analyst Blog

AT&T, Inc. (T - Analyst Report) announced that it is set to provide all fiber Internet network facility in Austin covering a broadband speed 1GB per second. Alongwith advanced TV services, the company is planning to offer its U-verse services powered by GigaPowerSM, representing one of the fastest Internet services in the city.

AT&T plans to take up U-verse to 10,000 customer locations across Austin with further expansions expected through 2014. AT&T announced it would work with government authorities to develop more fiber network platforms in Austin that complements the city’s technology ecosystem. The company’s new initiatives of offering U-verse with GigaPower remain part of its multi billion program- Project Velocity IP (VIP).

In Project Velocity IP, AT&T will invest $14 billion in the coming three years to considerably expand the wireless (investment of $8 billion) and wireline (investment of $6 billion) Internet Protocol (IP) broadband networks. The company targets to extend wireline IP network to nearly 57 million customer locations (including both customers and small businesses) – covering 75% of AT&T’s wireline service area – by the end of 2015. This project underlines the company’s efforts to meet the growing demand for high-speed Internet. We believe that this investment program will provide AT&T with a high-potential growth platform, leading to higher revenues and improved earnings per share.

Further, AT&T is looking at opportunities to improve its growth profile through a number of strategic initiatives. The company plans to woo customers with early upgrades to smartphones and tablets every year. The carrier also started offering a new device upgrade service called AT&T Next that will allow subscribers (both new and existing customers) to change their old smartphones or tablets every year without any upgrade fee or down payment. Further, AT&T struck a deal with New Zealand based Opus International Consultants to render global networking services.

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

Other Stocks

Hawaiian Telcom Holdco, Inc. (HCOM - Snapshot Report), with Zacks Rank #1 (Strong Buy), BT Group plc (BT - Snapshot Report) and Portugal Telecom, SGPS S.A. (PT), both with Zacks Rank #2 (Buy) are the three stocks which we believe are worth considering for investment.

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

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
CTPARTNERS… CTP 13.33 +3.49%
SAIA INC SAIA 45.65 +1.00%
VASCO DATA… VDSI 13.57 +0.67%
AMEDISYS IN… AMED 20.18 +0.10%
FIRSTSERVIC… FSRV 55.66 -0.13%