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Will AT&T's (T) Fortunes Return With the FirstNet Project?
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AT&T Inc. (T - Free Report) had a disappointing 2017. We believe that the U.S. telecom behemoth is currently facing several headwinds. However, the FirstNet Project may appear as a ray of hope for the company in 2018.
Recently, AT&T and the First Responder Network Authority (FirstNet) together revealed that all the 50 states of the nation, as well as two U.S. territories and Washington D.C., have entered the FirstNet project, the first dedicated nationwide wireless network for first responders.
Notably, in March 2017, AT&T was selected by FirstNet to build and manage the first nationwide broadband network dedicated to America's police, firefighters and emergency medical services. The network aims to cover all 50 states, five U.S. territories and the District of Columbia, including rural communities and tribal lands in those states and territories.
As part of the 25-year contract, FirstNet will provide AT&T with a swath of 20 MHz of spectrum in the 700 MHz frequency band for the entire duration. AT&T will also be given success-based payments of $6.5 billion over the next five years to design and build the network. The company is expected to spend around $40 billion over the life of the contract to build, deploy, operate and maintain the network. AT&T has projected that this contract will create more than 10,000 jobs over the next two years.
In October 2017, AT&T and FirstNet introduced a new developer programme focused on public safety innovation. The programme will supply applications to a new FirstNet app store. These apps will be utilized by first responders who will select appropriate solutions to work on the FirstNet network, which AT&T is set to build.
The FirstNet project aims to convert every city in the United States as smart cities with state-of-the-art IoT (Internet-of-Things) opportunities. AT&T will deliver a portfolio of IoT devices by March 2018. These gadgets will be used by police, firefighters and other first responders to create monitoring and tracking systems.
Importantly, AT&T plans to roll out next generation 5G wireless broadband (Internet) in a dozen U.S. cities by late 2018. It aims at becoming the first U.S. carrier to introduce 5G wireless Internet if the deadline is met. The company will connect FirstNet users to its telecom network assets, valued at more than $180 billion. This contract can be considered a necessary boost to the company’s profile.
AT&T’s consortium to deploy FirstNet includes Motorola Solutions Inc. (MSI - Free Report) , General Dynamics Corp. (GD - Free Report) , Sapient Consulting and Inmarsat Government. Per the deal, AT&T will be able to use this highly valuable spectrum for both commercial and consumer purposes. This is why several industry researchers believe that the FirstNet project may come as a boon to cell tower operators such as American Tower Corp. (AMT - Free Report) and SBA Communications Corp. (SBAC - Free Report) .
Price performance and Zacks Rank
In 2017, AT&T’s shares decreased 9.89%, worse than the industry’s decline of 8.14%. Notably, the benchmark S&P 500 index has gained a whopping 18.25% in the same time period. AT&T carries a Zacks Rank #4 (Sell). General Dynamics also carries the same Zacks Rank. However, Motorola Solutions has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Will AT&T's (T) Fortunes Return With the FirstNet Project?
AT&T Inc. (T - Free Report) had a disappointing 2017. We believe that the U.S. telecom behemoth is currently facing several headwinds. However, the FirstNet Project may appear as a ray of hope for the company in 2018.
Recently, AT&T and the First Responder Network Authority (FirstNet) together revealed that all the 50 states of the nation, as well as two U.S. territories and Washington D.C., have entered the FirstNet project, the first dedicated nationwide wireless network for first responders.
Notably, in March 2017, AT&T was selected by FirstNet to build and manage the first nationwide broadband network dedicated to America's police, firefighters and emergency medical services. The network aims to cover all 50 states, five U.S. territories and the District of Columbia, including rural communities and tribal lands in those states and territories.
As part of the 25-year contract, FirstNet will provide AT&T with a swath of 20 MHz of spectrum in the 700 MHz frequency band for the entire duration. AT&T will also be given success-based payments of $6.5 billion over the next five years to design and build the network. The company is expected to spend around $40 billion over the life of the contract to build, deploy, operate and maintain the network. AT&T has projected that this contract will create more than 10,000 jobs over the next two years.
In October 2017, AT&T and FirstNet introduced a new developer programme focused on public safety innovation. The programme will supply applications to a new FirstNet app store. These apps will be utilized by first responders who will select appropriate solutions to work on the FirstNet network, which AT&T is set to build.
The FirstNet project aims to convert every city in the United States as smart cities with state-of-the-art IoT (Internet-of-Things) opportunities. AT&T will deliver a portfolio of IoT devices by March 2018. These gadgets will be used by police, firefighters and other first responders to create monitoring and tracking systems.
Importantly, AT&T plans to roll out next generation 5G wireless broadband (Internet) in a dozen U.S. cities by late 2018. It aims at becoming the first U.S. carrier to introduce 5G wireless Internet if the deadline is met. The company will connect FirstNet users to its telecom network assets, valued at more than $180 billion. This contract can be considered a necessary boost to the company’s profile.
AT&T’s consortium to deploy FirstNet includes Motorola Solutions Inc. (MSI - Free Report) , General Dynamics Corp. (GD - Free Report) , Sapient Consulting and Inmarsat Government. Per the deal, AT&T will be able to use this highly valuable spectrum for both commercial and consumer purposes. This is why several industry researchers believe that the FirstNet project may come as a boon to cell tower operators such as American Tower Corp. (AMT - Free Report) and SBA Communications Corp. (SBAC - Free Report) .
Price performance and Zacks Rank
In 2017, AT&T’s shares decreased 9.89%, worse than the industry’s decline of 8.14%. Notably, the benchmark S&P 500 index has gained a whopping 18.25% in the same time period. AT&T carries a Zacks Rank #4 (Sell). General Dynamics also carries the same Zacks Rank. However, Motorola Solutions has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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