Leading telecom company, AT&T Inc. (T - Analyst Report) announced its plans of expanding its U-Verse TV service with a fresh launch in Greater Montgomery area, AL.
According to the press release, the expansion is part of the company’s Project Velocity IP (VIP) and supports growth in AT&T's IP and mobile data networks. In the near term, AT&T has plans to further its U-Verse TV expansion on the back of rollouts in additional local cities and areas.
AT&T remains focused on its project VIP initiative, which targets business expansion. These initiatives target 4G LTE expansion, spectrum and network capabilities enhancement, and seek to add 8.5 million new U-Verse service customers and 57 million broadband users, covering 75% of the company’s wireline footprint by the end of 2015. In addition, the company is also working toward the expansion of its fiber network to include 1 million new customer locations by 2015.
This project underlines the company’s efforts to meet the growing demand for high-speed Internet. We believe this investment program will offer AT&T a high-potential growth platform for revenues and earnings, going ahead.
In a bid to support its network infrastructure, AT&T had acquired 39 lower 700 MHz B Block spectrum licenses from Verizon Communications Inc. for $1.9 billion in 2013. In Jan 2014, the company also declared its plans to acquire 49 AWS spectrum licenses from Aloha Partners II, L.P. The licenses cover nearly 50 million people in 14 states. The transaction is expected to be completed by the second half of the year. In Dec 2013, AT&T also completed its lease transaction for 9,000 towers and sale of approximately 600 towers with Crown Castle (CCI - Analyst Report) for $4.83 billion.
AT&T currently has a Zacks Rank #3 (Hold).
Other Stocks that Warrant a Look
Better-ranked stocks in this sector include KT Corp. and Level 3 Communications, Inc. (LVLT - Analyst Report) with a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.