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AT&T Expects 2 Million Net Wireless Subscriber Additions in Q3

AT&T Inc.T , the second largest wireless carrier in the U.S., expects a net increase of 2 million in all of its subscriber categories in the third quarter of 2015. The company also anticipates an increment in customer count from its recent acquisition of DIRECTV. Last quarter, the company had reported a net 2.1 million increase in its subscriber base.

AT&T's revenues are also expected to augment in double digits this quarter.

Gearing for Growth

Earlier in August this year, the company projected an increase in operating revenues and free cash flow through 2018 as a result of its investments in DIRECTV and wireless expansion in Mexico. In addition, AT&T has been deploying sturdy cost-cutting measures which are likely to have a positive impact on operating profits for the current year.

Meanwhile, the company was named the top domestic investor for the fourth year in a row in terms of capital spending. The capital spending is perceived to increase this quarter as well, thus making way for positive growth in the future.

Moreover, competition is intense in the telecom space and AT&T has to fend off increasing threat from the likes of T-Mobile US, Inc. TMUS and Sprint Corporation S to consolidate its position in the domestic market. The company also aims to challenge Verizon Communications Inc. VZ for the number one spot in the U.S.

The Bottom Line

The telecom industry is maturing, with multiple players vying for a relatively handful of subscribers. Stable growth in subscriber base, to date, infers a positive outlook for AT&T. The company recently expanded operations in Mexico in a bid to diversify its market. However, with all its capital spending, can AT&T match growth expectations, outpace Verizon and clinch the number one spot in the U.S.? We leave it to time, for now.

AT&T Inc. (T) currently carries a Zacks Rank #3 (Hold).

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AT&T INC (T): Free Stock Analysis Report

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


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

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