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AT&T 5G Powers New York's Subway Connectivity: Will it Drive Revenues?
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Key Takeaways
AT&T launched 5G connectivity in NYC subway tunnels to address signal gaps and improve service.
The rollout uses a distributed antenna system to enable consistent coverage across underground transit lines.
Early deployment in a busy transit network may support subscriber growth and long-term expansion.
AT&T, Inc. (T - Free Report) recently announced that it has collaborated with Boldyn Networks and the Metropolitan Transportation Authority to expand 5G cellular connectivity inside underground subway tunnels in New York. This rollout aims to address several issues faced by users and operators of the subway network.
Subway tunnels usually have zero or extremely weak signals, leading to call drops and message failures. During emergencies, this undermines passengers’ ability to call for help. Essential applications related to payments and work emails do not work properly because of inconsistent connectivity. Underground spaces are getting disconnected from the growing digital ecosystem. Boldyn’s DAS (Distributed Antenna System) cellular network is creating a shared digital backbone with AT&T 5G to mitigate these problems.
In DAS, fiber cable runs through tunnels with an antenna installed every few meters. These antennas are connected back to the telecom network provided by AT&T. In the recent venture, T has activated its cellular service in 4/5 lines between Bowling Green and Fulton Street stations and the Crosstown G line between Bedford-Nostrand Avenues and Hoyt-Schermerhorn Streets stations.
AT&T is the first telecom service provider to have deployed connectivity in those subway tunnels. First mover advantage in one of the country’s busiest subway networks can potentially drive subscriber addition. Growing adoption of AT&T 5G in smart city applications bodes well for sustainable growth.
How Are Competitors Faring?
The company faces competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) in this domain. Verizon’s smart city solutions combine IoT, 5G and Edge computing. The company is rapidly expanding into leading-edge V2X technology with innovative product launches such as Verizon Edge Transportation Exchange. The solution offers real-time alerts to traffic, pedestrians and supports the autonomous driving ecosystem.
T-Mobile’s smart city solutions focus on traffic management, public safety, environmental monitoring and power optimization. The company has been chosen as the exclusive wireless carrier to support a wide range of mission-critical operations in New York City (NYC). T-Mobile’s network will serve as the backbone for one of the largest and most demanding public safety operations in the United States. With T-Priority, first responders in NYC will experience lower latency, faster speeds and guaranteed priority access across all 5G bands, even during times of extreme congestion.
T’s Price Performance, Valuation & Estimates
AT&T stock has gained 2.2% over the past year against the Wireless National industry’s decline of 7.6%.
Image Source: Zacks Investment Research
Going by the forward price to earnings ratio, the company’s shares currently trade at 12.25 forward earnings, lower than the industry’s 13.28.
Image Source: Zacks Investment Research
Earnings estimates for T for 2026 and 2027 have moved upward in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
AT&T 5G Powers New York's Subway Connectivity: Will it Drive Revenues?
Key Takeaways
AT&T, Inc. (T - Free Report) recently announced that it has collaborated with Boldyn Networks and the Metropolitan Transportation Authority to expand 5G cellular connectivity inside underground subway tunnels in New York. This rollout aims to address several issues faced by users and operators of the subway network.
Subway tunnels usually have zero or extremely weak signals, leading to call drops and message failures. During emergencies, this undermines passengers’ ability to call for help. Essential applications related to payments and work emails do not work properly because of inconsistent connectivity. Underground spaces are getting disconnected from the growing digital ecosystem. Boldyn’s DAS (Distributed Antenna System) cellular network is creating a shared digital backbone with AT&T 5G to mitigate these problems.
In DAS, fiber cable runs through tunnels with an antenna installed every few meters. These antennas are connected back to the telecom network provided by AT&T. In the recent venture, T has activated its cellular service in 4/5 lines between Bowling Green and Fulton Street stations and the Crosstown G line between Bedford-Nostrand Avenues and Hoyt-Schermerhorn Streets stations.
AT&T is the first telecom service provider to have deployed connectivity in those subway tunnels. First mover advantage in one of the country’s busiest subway networks can potentially drive subscriber addition. Growing adoption of AT&T 5G in smart city applications bodes well for sustainable growth.
How Are Competitors Faring?
The company faces competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) in this domain. Verizon’s smart city solutions combine IoT, 5G and Edge computing. The company is rapidly expanding into leading-edge V2X technology with innovative product launches such as Verizon Edge Transportation Exchange. The solution offers real-time alerts to traffic, pedestrians and supports the autonomous driving ecosystem.
T-Mobile’s smart city solutions focus on traffic management, public safety, environmental monitoring and power optimization. The company has been chosen as the exclusive wireless carrier to support a wide range of mission-critical operations in New York City (NYC). T-Mobile’s network will serve as the backbone for one of the largest and most demanding public safety operations in the United States. With T-Priority, first responders in NYC will experience lower latency, faster speeds and guaranteed priority access across all 5G bands, even during times of extreme congestion.
T’s Price Performance, Valuation & Estimates
AT&T stock has gained 2.2% over the past year against the Wireless National industry’s decline of 7.6%.
Image Source: Zacks Investment Research
Going by the forward price to earnings ratio, the company’s shares currently trade at 12.25 forward earnings, lower than the industry’s 13.28.
Image Source: Zacks Investment Research
Earnings estimates for T for 2026 and 2027 have moved upward in the past 60 days.
Image Source: Zacks Investment Research
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.