), in collaboration with NBCUniversal, recently announced that it
will deliver content for the coverage of the XXII Olympic Winter
Games from Sochi, Russia through its U-verse service. The
coverage starts on Feb 6 and will continue through Feb 23.
Through U-verse TV, AT&T customers can access over 1,500
hours of Winter Olympic programming live as well as on-demand. We
expect the new agreement to bolster the company's U-verse
services and support revenue growth.
The market reacted positively to the news and AT&T's stock
price moved up 37 cents to close at $32.45 on Nadsaq on
The Olympic coverage will be available on NBC, NBC Sports
Network (NBCSN), MSNBC, CNBC, and USA Network. In addition,
through NBCOlympics.com and the NBC Sports Live Extra app -
America's Olympic digital destinations - subscribers can stay
connected on the go.
Apart from tie-ups with NBCUniversal, AT&T is looking at
opportunities to improve its growth profile and competitive
position through a number of strategic initiatives. Recently, the
company announced a reduction in pricing for family plans,
including data on its G LTE network.
Customers with a family of four can now switch to AT&T's
family plan that offers unlimited talk and text, and 10GB of data
for $160 a month. The reduced rates are likely to draw more
customers to AT&T.
The competitive pricing will also give AT&T an edge over
T-Mobile US, Inc.
Further, in Jan 2014, AT&T came up with promotional offer
of $100 credit for new and existing customers who add an
additional smartphone, tablet, feature phone, mobile hotspot or
Wireless Home Phone line.
Last year, the company began selling AT&T Next, which
offers customers with early upgrades to smartphones and tablets
every 12 or 18 months without paying any downpayment, activation
charge, upgrade cost or financing fee. The company's Mobile Share
plan is also gaining popularity with already 21 million post-paid
subscribers. The company introduced new mobile share value plans
to generate more sales as well as greater value to customers
given more savings with no annual service contract options.
We believe that this investment program will provide AT&T
with a high-potential growth platform for revenues and
AT&T currently has a Zacks Rank #3 (Hold).
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