) - the second largest telecom operator in the U.S. just after
Verizon Communication Inc.
) - recently announced its plan to build a high-speed fiber optic
infrastructure in Austin, Texas.
Implementing such a technology across the region will not only
boost its fiber network speed to 1 gigabit per second but will
) threat of deploying fiber Internet service across the same
Google started to enroll subscribers residing in Kansas City
for the fiber Internet and TV service starting at $120 per month.
So, it is highly anticipated that AT&T will keep its price
quite attractive as compared to Google.
Google Fiber service will offer 1 GB data plan to customers
coupled with 1 TB Google drive storage capacity and 2 TB TV
recording service. Google's fiber service will start in
Austin from the middle of fiscal 2014. However, it is not certain
when AT&T will start its high-speed fiber service.
AT&T's Wireline revenues dipped 0.5% year over year to
$14.9 billion. AT&T's total video subscribers, which include
U-verse TV and bundled satellite customers, touched 8.0 million
at the end of the fourth quarter of 2012. Total U-verse TV
subscribers reached 4.5 million with the net addition of 192,000
Hence, we believe that deployment of such a high-speed fiber
optic cable technology will not only trigger subscriber growth
for AT&T's Wireline segment but at the same time will also
drive top-line growth, going forward.
Currently, AT&T Inc. has a Zacks Rank #2 (Buy).
Another telecom company,
Rogers Communications Inc.
) belonging to the same sector also has a Zacks Rank #2
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