AT&T Inc. (T - Analyst Report) announced plans to enhance its Push-to-Talk services, which include push-to-talk devices, services on mobile operating systems, and Wi-Fi network for customers in the U.S. The company is adding workforce management functionality to its push-to-talk solution. The enhancement would help the company’s supervisors in online team management.
Apart from traditional wireline and wireless services, AT&T is progressing well in making its mark in enterprise services. Apart from its Push-to-Talk solution, AT&T entered the home security and automation service market this year with the launch of Digital Life package. After debuting in 15 markets, the service is now available in 58 markets. AT&T is also expanding its managed security solutions (MSS) including mobile security solution, which is slated for a year-end launch.
For 2013, AT&T is expected to witness revenue growth aided by contributions from wireless services. Wireless data services, which represent $22 billion in annualized revenues with growth rate of approximately 18% per annum, are key drivers. AT&T’s wireless business, in particular the post-paid segment, is benefiting from promotional strategies that it had undertaken in the past.
In Sep 2013, the company collaborated with Global Wi-Fi Network provider, Fon to provide global Wi-Fi roaming facility to its customers. Given the new agreement, AT&T customers will be able to access Fon’s Wi-Fi hotspots while traveling internationally. In exchange, customers using the Fon network can connect through AT&T hotspots across the U.S. The deal covers smartphones, tablets and other Wi-Fi enabled devices.
Other positive attributes for the company include a strategic realignment initiative and a healthy financial profile. However, persistent access line losses, competitive pressure from the likes of Verizon Communications (VZ - Analyst Report) and regulatory issues will likely weigh on the stock in the coming days.
AT&T has a Zacks Rank #3(Hold).
Other stocks to consider in this sector are Shenandoah Telecommunications Co. (SHEN - Snapshot Report) and Telstra Corp. Ltd (TLSYY). Both carry a Zacks Rank #1 (Strong Buy).