) targets to upgrade its network capabilities and enhance the
accessibility of next-generation broadband services in the state
of Kentucky. For this action, the company will likely invest $600
million to $800 million from 2013 to 2015.
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This investment forms part of the AT&T's Project Velocity IP
(Internet Protocol) program that was set forth in November last
year. Per the project, the company will put in $14 billion over
the next three years to considerably expand the wireless
(investment of $8 billion) and wireline (investment of $6
billion) IP broadband networks. With this scheme, AT&T hopes
to satiate the growing demand among customers for high-speed
Internet access and new mobile, applications and cloud services.
Keeping in view the development of the both wireline and wireless
broadband availability in Kentucky, the Senate passed SB 88 to
revise the state's telecommunications laws and rules. The
economic scenario of the territory is now expected to get a
facelift, with top-speed Internet services that will support the
growth of large and small businesses, widen health care
facilities and render expansion on the academic front.
AT&T - the second largest provider of wireless services in
North America after
Verizon Communications Inc.
) - intends to direct its investment in Kentucky toward bringing
most of the people under the coverage of the 4G Long Term
Evolution (LTE) network as well as upgrade network quality and
boost spectrum efficiency. On the wireline front, the company
aims to promote U-verse (TV, Internet, Voice Over IP) services
and spread out its fiber network.
The Project Velocity IP plan underlines AT&T's efforts to
serve customers efficiently and deliver superior services against
other operators such as
Sprint Nextel Corp.
Telephone & Data Systems Inc.
). We believe that this investment program will provide AT&T
with a high-potential growth platform, leading to higher revenues
and improved earnings in the months ahead.
AT&T currently has a Zacks Rank #3 (Hold) rating.