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AT&T (T) Extends 5G & Edge Capabilities With Google Cloud

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AT&T Inc. (T - Free Report) recently extended its long-standing business relationship with Google Cloud, a suite of cloud computing services offered by Alphabet Inc.’s (GOOGL - Free Report) Google to unveil end-to-end solutions for improved customer experiences. The solutions are likely to facilitate diverse businesses to better harness edge connections and edge computing capabilities as increased 5G deployments give rise to a large quantum of data.

Edge computing is a core focus area for AT&T and offers faster processing and potentially enhanced security for business applications. While AT&T Multi-access Edge Compute Services offer seamless cellular coverage along with better capabilities to manage cellular traffic through virtual network functions, Google Cloud provides the required infrastructure to move businesses from centralized locations to a cloud platform.

Powered by AT&T's wide network coverage, the edge computing solutions leverage Google Cloud's core capabilities in Kubernetes, AI, ML, data and analytics to offer a flexible tool to better analyze data and process low-latency, high-bandwidth applications. The collaboration particularly intends to enable customers to swiftly convert data into actionable intelligence, enabling unique digital experiences and smarter operations. The two companies aim to take their partnership to the next level by providing immersive customer experiences in industries like retail, healthcare, manufacturing and entertainment among others to help businesses add value to their operations.

In particular, the new solutions are likely to help retail firms to streamline inventory by integrating brick-and-mortar, e-commerce and backend operations for improved visibility. Moreover, video analytics solutions are likely to help minimize theft and pilferage as well as effectively manage crowd and queue. In the healthcare sector, AR (augmented reality) and VR (virtual reality) techniques are likely to offer remote care services to patients, while remote support and quality control checks at plant locations are expected to improve seamless manufacturing operations. The new solutions are further expected to enhance in-venue entertainment experiences with immersive AR and VR offerings.    

AT&T anticipates gaining an advantage over rivals through edge computing services that allow businesses to route application-specific traffic to where they need it and where it’s most effective — in the cloud, the network or on their premises. Through its Multi-access Edge Compute solution, the company offers the flexibility to better manage data traffic with greater control of their business operations. It 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 ML techniques and more connected devices, this could transform the way data-intensive images are transferred across the industry on real-time basis.

The stock has lost 4.7% over the past year against the industry’s growth of 5.7%.

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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 Cogent Communications Holdings, Inc. (CCOI - Free Report) and United States Cellular Corporation (USM - 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.

Cogent delivered an earnings surprise of 29%, on average, in the trailing four quarters.

United States Cellular delivered an earnings surprise of 123.9%, on average, in the trailing four quarters.

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