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AT&T (T) Boosts Hybrid Workforce Communication With Cisco Tie-Up

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AT&T Inc. (T - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) have joined forces in order to better adapt to the evolving communication requirements of the hybrid workforce and embrace the ‘new normal’. The collaboration aims to optimize business operations and facilitate the seamless transition to the digital realm.

Per the deal, Cisco’s Webex Calling will be made available to AT&T’s enterprise clients. Webex Calling is an integrated phone service in the cloud that enables users to make or receive calls anywhere on any device. This subscription-based service offers centralized administration and security features for a complete enterprise-grade cloud calling and team collaboration solution. This, in turn, is likely to enable the hybrid workforce that largely intend to continue working from remote locations in post COVID-19 era an effective communication tool.

The companies expect to offer this service to about 1 million users over the next five years. Leveraging Cisco’s Unified Communications Manager Cloud, AT&T is likely to expand and customize the broader Webex portfolio with its own gamut of services such as 5G, SD WAN, mobility, fiber and IP infrastructure to better serve various ecosystems. This cost-effective solution reduces costly overheads associated with a physical business phone system and has a built-in security feature for a safe remote work environment.  

AT&T anticipates gaining a competitive advantage over rivals through edge computing services that allow businesses to route application-specific traffic, where they need it and where it’s most effective — whether in the cloud, the network or on their premises. Through its Multi-access Edge Compute (MEC) solution, the company offers the flexibility to better manage the data traffic. The MEC leverages indigenous software-defined network to enable low-latency, high-bandwidth applications for faster access to data processing. AT&T expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts in the near future. Utilizing machine learning techniques and more connected devices, this could transform the way data-intensive images are transferred across the industry on real time basis.

As the first carrier in the industry, the company has unveiled its 5G policy framework that hinges on three pillars — mobile 5G, fixed wireless and edge computing. In order to have a seamless transition among Wi-Fi, Long-Term Evolution and 5G services, AT&T intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails utilization of millimeter wave spectrum for deployment in dense pockets while in suburban and rural areas, it intends to deploy 5G on mid- and low-band spectrum holdings. It believes that as the 5G ecosystem evolves, customers can experience significant enhancements in coverage, speeds and devices. An integrated fiber expansion strategy is expected to improve the broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience.

The stock has lost 12% in the past year against the industry’s growth of 6.8%.
 

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Nevertheless, we remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are United States Cellular Corporation (USM - Free Report) and ATN International, Inc. (ATNI - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

U.S. Cellular delivered a trailing four-quarter earnings surprise of 123.9%, on average.

ATN International delivered an earnings surprise of 424.2%, on average, in the trailing four quarters.

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