AT&T Inc. (T - Free Report) and Nokia Corporation (NOK - Free Report) have joined forces to provide virtually seamless Internet of Things (IoT) connectivity on a global scale.
By using Nokia’s Worldwide IoT Network Grid (WING), AT&T has enabled its enterprise customers to enjoy the benefits of Nokia’s global IoT ecosystem.
Nokia WING provides a managed service for communication service providers (CSPs), including provisioning, device management, operations, security, customer care and billing for connected applications. It also enables CSPs to enter the IoT market quickly.
With combined efforts, AT&T and Nokia plan to develop, test and launch the next generation of IoT services to extend coverage to industries such as transportation, health, manufacturing, retail, agriculture, utilities, and consumer electronics.
The collaboration will help prepare for the evolution to 5G globally. Commercial deployment is likely to start later this year. WING’s core network assets are expected to be available in more than 20 countries across Europe, Asia, North America, South America and the Middle East by the first quarter of 2020.
AT&T’s strategic move will assist enterprise customers to bring higher capabilities to more places with enhanced performance and flexibility, lower latency and enhanced platform capabilities.
Meanwhile, in a separate development, AT&T has collaborated with the U.S. Air Force Academy for the advancement in the latter’s technology capabilities, helping it keep pace with commercial innovation as well as meet current and future technology needs.
The company and the Air Force have inked a five-year Cooperative Research and Development agreement, with an aim to augment the latter’s use of modern technology and hence, improve its mission capabilities.
The partnership will provide knowledge and commercial best practices of cybersecurity, IoT and other AT&T-led innovations for the Air Force Academy faculty, including Smart Base solutions, software-defined networking and 5G.
Going forward, such strategic alliances are likely to positively impact AT&T’s top line and give it a competitive edge over its peers within the wireless industry.
Share Price-Return Performance
Over the past three months, shares of AT&T have underperformed the industry with an average loss of 8.7% compared with a decline of 4.5% for the latter.
Zacks Rank and Stocks to Consider
AT&T currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include Motorola Solutions, Inc. (MSI - Free Report) and Ubiquiti Networks, Inc. (UBNT - 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.
Motorola has a long-term earnings growth expectation of 8%. It beat earnings estimates in each of the trailing four quarters, the average being 12.1%.
Ubiquiti has a long-term earnings growth expectation of 18.6%. It exceeded earnings estimates thrice in the trailing four quarters with an average positive surprise of 8.9%.
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