Boston, MA 10/30/2013 (wallstreetpr) – The third quarter results reported by telecommunications giant AT&T Inc. (NYSE:T) were in line with market expectations. Revenues were at $32.2 billion with net earnings of $3.8 billion. The telecommunications giant is aware that it will have to look at other businesses outside its traditional line for future growth in revenues and profits. With the Federal Communications access deal, AT&T will have to share its platform with smaller and regional carriers. AT&T had to concede to interoperability between its frequencies and nearby frequencies. The monopoly AT&T had enjoyed for so many years will now be destroyed at users of regional carriers will gain access of AT&T’s superior network without subscribing to AT&T’s plans. Smaller operators will gain access to devices built exclusively for AT&T’s services. The company had sold 6.7 million smartphone and about 75% of its postpaid subscribers have a smartphone.
The company is banking on a faster rollout its 4G LTE services to differentiate its services from smaller players. The fiber and U-verse projects have been fast tracked. These are very capital intensive projects. The net debt will soon reach $75 billion. The company is selling assets of its non-core units to strengthen liquidity. The agreement to lease 9,100 towers to Crown Castle International Corp. (NYSE:CCI) for $4.8 billion is a step in the right direction. AT&T has also tied with Microsoft Corporation (NASDAQ:MSFT) for joint development of unified communication. Unified communications is expected to be the next-big-thing in the IT sector and is expected to disrupt the telecommunications industry. The technology aims to provide cloud based voice and video capabilities.
AT&T is also looking at auto-makers as they adopt wireless connectivity features in their cars. Besides providing internet connectivity, such features like remote engine diagnostics, stolen-vehicle location as well as two way communications for roadside assistance can be provided. The company is already in the process of developing such products for Tesla Motors Inc (NASDAQ:TSLA), General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F).
These steps show that AT&T is gearing up to face future challenges head on.