) in collaboration with NEC Corporation announced the launch of
4G LTE smartphone - NEC Terrain. The hardiness of this
smartphone makes it suitable for use in even harsh conditions and
its features cater specially to business use.
NEC Terrain will be available in stores from Jun 21, for
$199.99 on a two-year contract. We believe the latest addition of
handset will lead to customer additions and upgrades and in
turn revenue accretion.
Last week, the company also announced the launch of the latest
Samsung premium smartphone - Galaxy S4 -to be available from Jun
21. This year, AT&T rolled out
Research in Motion
) BlackBerry Z10 with the aim of adding customers. The company in
its latest update on its second quarter performance indicated a
surge in its wireless business, in particular the post-paid
segment, following promotional strategies that it had
These initiatives resulted in increased smartphone upgrades
along with sales. AT&T is now primarily focused on
adding devices that mostly support 4G LTE to its equipment
portfolio. This is because the company has accelerated its 4G
Long-Term Evolution (LTE) and remains ahead of schedule.
The company boasts the best Internet speeds in the industry as it
is the only U.S. carrier that provides 4G networks through both
Long Term Evolution (LTE) and High-Speed Packet Access Plus
(HSPA+) technologies. AT&T's LTE networks serve as the
benchmark of mobile technology and the life-blood for operators
across the world.
The LTE expansion of the company is also supported through
Project Velocity. Under this project, AT&T will invest $14
billion in the coming three years to considerably expand the
wireless (investment of $8 billion) and wireline (investment of
$6 billion) Internet Protocol (IP) broadband networks.
The company targets to extend the wireline IP network to nearly
57 million customer locations (including both customers and small
businesses) - covering 75% of AT&T's wireline service area -
by the end of 2015. 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, leading to higher revenues
and improved earnings per share over the near term. Further, we
also provide with a competitive position against rivals like
Verizon Communications Inc.
Sprint Nextel Corp.
AT&T, currently has Zacks Rank #3 (Hold).
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