AT&T, Inc. (T - Analyst Report) announced the expansion of its wireless broadband services by installing Distributed Antenna Systems (DAS) in New Orlean’s Central Business District, Convention Center and the French Quarter. Through the DAS system installation the company will be able to enhance wireless capacity management in heavy traffic areas. The company expects to facilitate network capacity by building 11 cell sites in the busy areas of New Orleans
AT&T is experiencing strong momentum in its wireless broadband businesses. The company boasts the best Internet speeds in the industry as it is the only U.S. carrier that provides 4G networks through both Long Term Evolution (LTE) and High-Speed Packet Access Plus (HSPA+) technologies.
AT&T initially rolled out LTE networks late last summer that went on to become the benchmark of mobile technology and the life-blood for operators across the world. AT&T 4G LTE service is currently available in 103 markets with more than 150 million users in the U.S. The company aims to reach about 250 million people by 2013-end and 300 million by the end of 2014. Further, the company’s offers Mobile Share plans, which connects more than one device to its data plan boosting its data services.
We remain optimistic about AT&T’s growth prospects, driven by subscriber accretion, higher smartphones adoption, LTE mobile broadband network, iPhone sales and U-verse expansion that will lead to improved revenue growth.
The company’s foray into cloud computing and hotel Wi-Fi businesses is expected to lead to better profitability. The other positive attributes of the company include a strategic realignment initiative and a healthy financial profile. However, persistent access line losses, competitive pressures from peers like Verizon Communications (VZ - Analyst Report) and regulatory issues will likely weigh on the stock in the coming days.
AT&T retains a Zacks Rank #3 (Hold). For the long term, we have our Neutral recommendation on the stock.