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AT&T (T) & FirstNet to Enhance U.S. Army Communications

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AT&T Inc. (T - Free Report) recently announced that the U.S. Army has selected FirstNet to support firefighters, law enforcement and security personnel at 72 Army installations across the country and Puerto Rico.

FirstNet is the nationwide, wireless communications platform dedicated to America’s first responders and public safety community. It is built with AT&T in a public-private partnership with the First Responder Network Authority, an independent agency within the federal government.

Per the deal, AT&T will provide almost 3,200 lines of FirstNet services with 3,000 FirstNet-capable devices and 700 signal boosters to help improve indoor connectivity. The company will also offer staging and kitting of devices, including preloading multiple FirstNet apps on the devices.

The FirstNet capabilities will enable the Army to experience highly secure communications during national emergencies. This, in turn, will offer public safety personnel an unparalleled level of support as well as mission-focused tools and technology. AT&T continues to invest in its wireless and wireline networks to expand coverage and improve connectivity.

Meanwhile, AT&T’s superior service quality and network resiliency in the current situation are helping it differentiate its wireless offerings. The company is benefiting from lower levels of wireless churn and growing adoption of Unlimited Elite wireless plans.

The company is confident of its ability to generate strong cash flows, thanks to the resiliency of wireless and broadband services and the demand for business connectivity. While the wireless market remains competitive, AT&T is benefiting from its investments over the past few years to improve network capacity.

AT&T aims to strengthen its balance sheet while investing in key growth areas. These include broadband connectivity in fiber and 5G and software-based entertainment like HBO Max and AT&T TV. The company is also looking for non-core assets monetization opportunities to drive shareholder value.

Shares of AT&T have lost 9.7% in the past six months against 7.3% growth of the industry.

AT&T has a Zacks Rank #3 (Hold), at present.

Some better-ranked stocks in the broader industry are Corning Incorporated (GLW - Free Report) , Ooma, Inc. (OOMA - Free Report) and Viasat, Inc. (VSAT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corning delivered a trailing four-quarter positive earnings surprise of 39.9%, on average.

Ooma delivered a trailing four-quarter positive earnings surprise of 238.9%, on average.

Viasat delivered a trailing four-quarter positive earnings surprise of 361.3%, on average.

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