Back to top

Analyst Blog

AT&T Inc.(T - Analyst Report) – the second largest telecom operator in the U.S. just after Verizon Communication Inc. (VZ - Analyst Report) – recently announced its plan to build a high-speed fiber optic infrastructure in Austin, Texas.

Implementing such a technology across the region will not only boost its fiber network speed to 1 gigabit per second but will also challenge Google Inc.’s threat of deploying fiber Internet service across the same footprint.

Google started to enroll subscribers residing in Kansas City for the fiber Internet and TV service starting at $120 per month. So, it is highly anticipated that AT&T will keep its price quite attractive as compared to Google.

Google Fiber service will offer 1 GB data plan to customers coupled with 1 TB Google drive storage capacity and 2 TB TV recording service.  Google’s fiber service will start in Austin from the middle of fiscal 2014. However, it is not certain when AT&T will start its high-speed fiber service.

AT&T’s Wireline revenues dipped 0.5% year over year to $14.9 billion. AT&T's total video subscribers, which include U-verse TV and bundled satellite customers, touched 8.0 million at the end of the fourth quarter of 2012. Total U-verse TV subscribers reached 4.5 million with the net addition of 192,000 customers.

Hence, we believe that deployment of such a high-speed fiber optic cable technology will not only trigger subscriber growth for AT&T’s Wireline segment but at the same time will also drive top-line growth, going forward.

Currently, AT&T Inc. has a Zacks Rank #2 (Buy). 

Another telecom company, Rogers Communications Inc. (RCI) belonging to the same sector also has a Zacks Rank #2 (Buy).

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
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%