) announced the expansion of its Digital Life package in new
markets-Anacortes, Oak Harbor and Mount Vernon in Washington, and
Albany, Corvallis, Lebanon and Salem in Oregon. In 2013, AT&T
entered the home security and automation service market with the
launch of Digital Life package and has already gained significant
market traction in this product segment. We believe the expansion
of Digital Life package will eventually remain accretive to
revenues and add to bottom-line growth.
The company previously stated that the market for home
security services is significantly unaddressed as only 1% of U.S.
households have an automated security system. As a result, the
company sees financial opportunity in the $18 billion market for
automated home security systems. AT&T has so far seen more
success in this market compared to its peers thanks to its own
technology in home security digital products and adequate
marketing and promotional measures.
Apart from the expansion of new products and services, the
company already enjoys strong momentum in both wireline and
wireless businesses. While continued strength in smartphones is
fueling growth in wireless business, wireline is benefiting from
growth in its U-verse and strategic services. AT&T is the
leader in WiFi (wireless broadband) connectivity with over 30,000
domestic and 190,000 international hotspots.
Other positive attributes for the company include a strategic
realignment initiative and a healthy financial profile. However,
persistent access line losses, competitive pressure from the
) and regulatory issues will likely weigh on the stock in the
AT&T retains a Zacks Rank #3 (Hold).
Better-ranked stocks in this sector include
Shenandoah Telecommunications Co.
Nippon Telegraph and Telephone Corp.
). Both carry a Zacks Rank #1 (Strong Buy).
NIPPON TELE-ADR (NTT): Free Stock Analysis
SHENANDOAH TELE (SHEN): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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