) plans to offer
) latest additions - iPhone 5s and iPhone 5c. Customers can avail
these smartphones at AT&T stores beginning Sep 20.
The company will be offering iPhone 5S at low monthly
installments with a price tag of $199 for the 16GB model, $299
for the 32GB model and $399 for the 64GB model. In addition,
iPhone 5C will be offered at $99 and $199 for the 16GB and 32GB
models, respectively. We believe AT&T's latest iPhone
offering not only supports increased market traction but also
backs the growing popularity of its LTE services.
Apart from iPhones, AT&T rolled out
) BlackBerry Z10 this year, with the aim of adding customers. In
its second quarter, the company experienced a surge in its
wireless business, in particular the post-paid segment, following
promotional strategies that it had undertaken.
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 is also supported by 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
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, it
also provides with a competitive position against rivals like
Verizon Communications Inc.
AT&T currently has Zacks Rank #3 (Hold).
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