) recently announced the expansion of its business collaboration
) by incorporating Microsoft Lync to its Unified Communications
(UC) portfolio of services.
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Microsoft Lync is an enterprise software, designed for corporate
environments. The basic features of this product include instant
messaging, Voice Over IP (VoIP), and video conferencing services.
By adding Microsoft Lync to its advanced network, AT&T
expects to woo the enterprise market, thereby gaining significant
AT&T, the largest wireless provider in the U.S., is looking
for opportunities to improve its growth profile through a number
of strategic initiatives. The company recently introduced a
cloud-based Content Delivery Network (CDN) platform. The
attractively priced CDN offers best-in-class digital media
The company also collaborated with Zynga, a popular Web-based
social gaming company to offer mobile social gaming options on
its Google Inc. (
) Android-based smartphones and tablets. Additionally, AT&T
inked a multi-year deal with The Walt Disney Company (
) in Jan 2013, to provide Disney's sports, news and entertainment
content to its TV customers. In January, the company also entered
into a cloud-based video conferencing service agreement with
We believe these initiatives coupled with AT&T's networking
infrastructure that combines Long Term Evolution (LTE) and
High-Speed Packet Access Plus (HSPA+) technologies, will support
significant market penetration in the wireless space.
However, the company suffers through constant access line losses,
competitive threats, heavy iPhone subsidies and federal
regulations that could hold back its prospects.
AT&T has a Zacks Rank #3, implying a Hold rating.