The U.S. telecom giant
) and privately-held Rank Group recently renewed their networking
contract by another three years.
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The companies had first entered into the contract in 2008.
Thereafter, AT&T has immensely helped Rank Group to emerge as
a top-notch packaging business across the globe. Meanwhile, Rank
Group aims to consolidate and standardize all its
telecommunications services among its subsidiaries with that of
AT&T's across all U.S. locations.
With the acquisition of Graham Packaging in June 2011, New
Zealand-based Rank Group started operating its own data network
as a local service provider. The global solutions extended by
AT&T enabled Rank Group to integrate the network of all their
companies. This brought forward the flexibility to execute
managed router services at much lesser operational expenses.
Additionally, international packaging and auto parts business
company - Rank Group - also receives mobility solution - that
gives competitive mobile voice and data packages along with
individual packages for employees - from AT&T.
Both AT&T's and Rank Group's teams at United States and New
Zealand have worked closely to make the agreement function
Headquartered in Dallas, Texas, AT&T offers a wide range of
communication and business solutions that include wireless, local
exchange, long-distance, data/broadband and Internet, video,
managed networking, wholesale and cloud-based services.
Recently, the company started selling
) new iPad Mini to its customers at a reduced price. Customers
can get the new iPad Mini at a discounted price from
AT&T-owned stores coupled with a two-year data plan.
We believe that AT&T displays a strong growth profile, based
on more subscriber accretion, iPhone sales and lucrative business
tie-ups. Further, a healthy balance sheet and strong commitment
to shareholders' return make the stock more attractive. However,
the persistent access line losses, competitive pressures and the
cut-throat pricing environment will likely drag the near-term
margins and earnings.
We are currently maintaining our long-term Neutral recommendation
on AT&T. The stock retains Zacks#3 Rank, implying a
short-term Hold rating.