The Zacks Analyst Blog Highlights: Apple, AT&T, Verizon Communications, Sprint Nextel and MetroPCSCommunication - Press Releases


For Immediate Release

Chicago, IL - February 15, 2012 - announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple  ( AAPL ), AT&T Inc.  ( T ), Verizon Communications  ( VZ ), Sprint Nextel  ( S ) and MetroPCSCommunication  ( PCS ).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Tuesday's Analyst Blog:

AT&T Puts Limits on Unlimited Plan

Given the massive demand for wireless data services thanks to  Apple's  ( AAPL ) iPhone,  AT&T Inc.  ( T ) seems to be falling short of bandwidth. The company has formed a new policy of curtailing data speeds to better manage its data services on its network.

For an unlimited plan user through AT&T's smartphone's downloading data would now mean a struggle as the company has axed approximately 99% of the data speed in an attempt to limit the "unlimited" services.

The company's new act is expected to upset around 17 million of its customers under the unlimited plan. Complaints have already started pouring in for speed slowdown after using only 1 to 2 gigabytes by customers. However, on the legal front, the company is playing fair as it has not debarred the unlimited plans as per the contract but only curbed the speed limit which was in any case, not a promised affair.  

This has rendered smartphones worthless for most of the unlimited data users and the only remedy left for them is to switch to a tiered plan. This might sound pretty expensive for those who remain heavy users on unlimited plan but for some (wherein one uses around 2 to 3GB per month) the net impact would be neutral as the company offers tiered plan at a same price for limited data usage. 

We believe that this can be a temporary relief for AT&T to better manage network congestion in busy areas but cannot remain the permanent solution in a highly competitive wireless market. Although similar steps have been taken by other top tier company's like  Verizon Communications  ( VZ ), the approach seems much relaxed compared to AT&T. Verizon is only cutting down by the minimum requirement to keep the networks free of congestion.

The issues now surfacing over bandwidth shortage raises doubts over the efficacy of the present wireless market, ready for the ongoing boom in the wireless data space.  Over the last year, wireless carriers like AT&T, Verizon and  Sprint Nextel  ( S ) have registered an upsurge in their data service revenues.

The companies are in a fray to obtain spectrum licensing and lure customers with deploying 3G and 4G services across their markets.  Most of the investments made are directed toward technological upgrade and entry into new markets as compared to capacity into the existing markets leading to poor standards of services.

Going back to AT&T, the company is working on a number of strategies to tap opportunities in the wireless data market and currently operates the nation's fastest mobile broadband network. By 2013, AT&T intends to extend its 4G network to the entire American population.

These plans only indicate technological advancement by the company but not many have been disclosed to resolve the current network capacity shortfall by the company. How far these issues can eventually impact the financial results of the company is yet to be measured but if these problems continue to persist we believe AT&T may lose customers impacting its churn rates.

The company is already competing with the aggressive pricing plans of Verizon and Sprint. Moreover, smaller wireless carriers such as Deutsche Telekom's T-Mobile,  MetroPCSCommunication  ( PCS ) and others are also offering cost effective unlimited voice and data plans. This may negatively impact AT&T's high-end handset sales and result in subscriber retention challenges.

We maintain our long-term Neutral recommendation on AT&T, supported by a Zacks #3 Rank (Hold).

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at .

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339


APPLE INC ( AAPL ): Free Stock Analysis Report
METROPCS COMMUN ( PCS ): Free Stock Analysis Report
SPRINT NEXTEL ( S ): Free Stock Analysis Report
AT&T INC ( T ): Free Stock Analysis Report
VERIZON COMM ( VZ ): Free Stock Analysis Report
To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: AAPL , PCS , S , T , VZ

More from

Related Videos

Freshman Finance 101
Freshman Finance 101                
Spot the Dropout RRC
Spot the Dropout RRC                
Power on/Power Off
Power on/Power Off                  




Most Active by Volume

  • $16.34 ▼ 0.12%
  • $10.64 ▲ 1.33%
  • $112.76 ▼ 0.47%
  • $5.86 ▲ 1.38%
  • $28.54 ▲ 0.42%
  • $104.31 ▼ 1.24%
  • $13.87 ▲ 0.95%
  • $10.40 ▲ 0.97%
As of 8/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by