AT&T, Inc. (T - Free Report) has introduced Mobile Barcode Services powered by Scanbuy. This new service will enable the deployment of Quick Response Code or QR code based mobile marketing tools for enterprise customers. As advertising and marketing companies in the U.S. and overseas are rapidly resorting to the QR code based marketing tools, the new offering is expected attract more customers and be lucrative for AT&T.
The QR code is a square black and white box that contains encoded information but resembles a barcode. The QR code is an easy way for consumers to access information on any company or product.
Customers can scan these codes on a cell phone through various QR code reader applications like i-nigma for Apple Inc. (AAPL - Free Report) iPhone and Codee for Google Android-based smartphones. After scanning, the codes open a mobile landing page that shows discount vouchers, ad clippings or survey results.
AT&T is looking at opportunities to improve its growth profile through a number of strategic initiatives. Apart from the new Mobile Barcode Services, the company recently introduced its new cloud-based Content Delivery Network (CDN) platform. The attractively priced CDN offers best-in-class digital media solutions.
The company also collaborated with Zynga (ZNGA - Free Report) , a popular Web-based social gaming company to offer mobile social gaming options on its Android-based smartphones and tablets. Additionally, AT&T inked a multi-year deal with The Walt Disney Company (DIS - Free Report) and entered into a cloud-based video conferencing service agreement with Polycom.
We believe these initiatives coupled with AT&T’s networking infrastructure that combines Long Term Evolution and High-Speed Packet Access Plus technologies will support significant market penetration in the wireless space.
However, the company suffers from constant access line losses, competitive threats, heavy iPhone subsidies and federal regulations that could hold back its prospects.
AT&T has a Zacks Rank #2, implying a Buy rating.