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AT&T (T) Expands 5G Technology Trials in Three New Cities

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U.S. telecom behemoth, AT&T Inc. (T - Free Report) , is looking forward to spread its 5G technology trials to three new cities by the year end. The cities include Waco, TX; Kalamazoo, MI; and South Bend, IN.

In fact, the company will allow participants access to faster broadband services over a 5G internet connection and watch live TV via AT&T’s DirecTV Now. Colleges, hospitals, churches, restaurants and other small businesses are also likely to be included as participants in AT&T’s new trial.

In December 2016, AT&T already initiated next-gen 5G technology trials in partnership with Ericsson (ERIC - Free Report) using the millimeter wavelength technology in Austin, TX.

In mid-March 2017, the company announced its plans to offer standard-based mobile 5G services to consumers from late 2018. This came up on the back of 3rd Generation Partnership Project's (3GPP) decision to accelerate some elements in the 5G New Radio specification.

Advantages of 5G

AT&T claims that the trial of 5G network in Austin provided a download speed of 1 Gbps (gigabit per second), which is 200 times the throughput of the currently available standard 4G LTE network. Moreover, latency period of data delivery were well below ten milliseconds.

Furthermore, 5G technology is designed to be more power efficient than any other standard wireless networks available these days. Therefore, 5G-enabled mobile devices are likely to last longer than their 3G or 4G counterparts. Also, superfast 5G mobile networks will be of utmost importance to manage exponential growth in Internet-connected devices, popularly known as Internet of Things.

In this regard, the U.S. telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority, quality of services and scalability. Thus, in order to stay ahead of competitors, existing players need to be constantly on their toes to introduce innovative products. At this juncture, we believe AT&T’s drive for 5G wireless network bodes well for the company’s future growth.

This apart, Verizon Communications Inc. (VZ - Free Report) is also conducting field trials on 5G fixed wireless network. Regional wireless operator such as United States Cellular Corp. (USM - Free Report) is reportedly considering 5G fixed wireless network as a means to deliver last-mile broadband connectivity to underserved rural communities as well.

Price Performance & Zacks Rank

AT&T’s price performance has been dull over the last three months. The stock was down 2.6% compared with the industry’s decline of 1.2% in the same period.

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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