) announced that it has installed fiber-based broadband in
additional 450 office buildings bringing the total to 16,000
business customer locations. The company's efforts to develop its
broadband services remain highly accretive to profits in the
wireline segment, which has registered continues lows due to loss
of voice customers. We believe the efforts to introduce wirline
data services will bode well for the company's revenue
AT&T remains focused on its Velocity IP initiative, which
targets expansion of its business. The initiative focuses on the
expansion of broadband services to 57 million users, covering 75%
of the company's wireline footprint by the end of 2015. In
addition, the company is also seeking to expand its fiber network
to 1 million additional customer locations by 2015. The plan also
includes expansion of 4G LTE as well as U-verse services to 8.5
million new customer locations, and enhancing spectrum and
network capabilities. This project underlines the company's
efforts to meet the growing demand for high-speed Internet. We
believe that this investment program will provide AT&T with a
high-potential growth platform for revenues and earnings.
We also believe that in the coming months, wireline growth
will also be driven by strong business revenues and enhanced
strategic services. Consistent subscriber growth in the U-verse
segment is expected to continue in the coming days, leading to
higher revenues. In terms of U-verse broadband speed, AT&T
increased its speed up to 45 megabits per second, which is
available to almost two-third of the U-verse customer base. The
company is further trying to deploy speeds of up to 75 megabits
per second and faster in the future. We believe the expansion of
U-verse services will continue to boost data revenues and ARPU
(average monthly revenue per user) in the wireline segment.
which operates with carriers like
Verizon Communications Inc.
United States Cellular Corp.
) has a Zacks Rank #3 (Hold).
SPRINT CORP (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
US CELLULAR (USM): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.