AT&T, Inc. T boasts one of the largest 5G network infrastructures, connecting more than 310 million people across 26,100 cities and towns nationwide. The company’s 5G policy framework is based on three fundamental pillars: mobile 5G, fixed wireless and edge computing. It's 5G services utilize millimeter wave spectrum for deployment in dense urban pockets to match the high-capacity requirements. In suburban and rural areas, it deploys 5G on mid and low-band spectrum holdings.
The company has formed a collaboration with Microsoft to move its 5G mobile network to the latter’s cloud. The process will start with AT&T’s 5G core, which is the 5G network’s main software that connects mobile users with the Internet. The move will enable AT&T to enhance productivity and deliver large-scale network services to meet customers’ needs.
Per a report from Grand View Research, U.S. 5G services market are expected to witness a staggering 51.1% compound annual growth rate from 2025 to 2030. Growing use of high-bandwidth intensive applications, such as video streaming, video calling, gaming, virtual reality, cloud and AI use cases, is driving demand for fast 5G connectivity. AT&T has been rapidly improving its 5G infrastructure to capitalize on this emerging market trend.
In recent months, the company has deployed mid-band spectrum from EchoStar around 23,000 cell sites. This will ensure a significant increase in speed and capacity for customers in 5,300 cities across 48 states. The integration of the spectrum from Echo Star has improved download speed for mobility by 80%, while it has improved 55% for AT&T Internet Air users. The acquisition of EchoStar is a smart approach from AT&T, as it eliminates the requirement for capital-intensive construction of cell sites to boost network capacity.
How are Competitors Faring?
AT&T faces stiff competition from other major players, Verizon Communications, Inc. VZ and T-Mobile, US, Inc. TMUS in the 5G market. T-Mobile follows a multi-layer approach to 5G, with dedicated standalone 5G deployed nationwide across 600 MHz, 1.9 GHz and 2.5 GHz bands. The company’s 5G network covers 98% of Americans, or 330 million people, in the country. T-Mobile’s business strategy is built on covering 90% of rural America with average 5G speeds of 50 Mbps, up to two times faster than broadband.
It continues to deploy 5G with the mid-band 2.5 GHz spectrum from Sprint.
Verizon is steadily developing the entire network infrastructure and ecosystem to provide the most consistent 5G experience to customers. The telecom giant plans to accelerate the availability of its 5G Ultra-Wideband network across the country. Verizon’s 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These include massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells.
T’s Price Performance, Valuation & Estimates
AT&T has gained 7.6% over the past year against the industry’s decline of 6%.
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From a valuation standpoint, AT&T trades at a forward price-to-earnings ratio of 10.95, below the industry tally of 11.62.
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Earnings estimates for 2025 have increased 0.5% to $2.06 over the past 60 days, while the same for 2026 have also increased 0.4% to $2.26.
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AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
