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AT&T Inc. (NYSE:T) Bets Big On Broadband Connectivity – GOOG, VOD

Boston, MA 10/10/2013 (wallstreetpr) – AT&T Inc. (NYSE:T) is betting big on broadband and it is also not too worried about ruffling any feathers. It has announced a host of new services aimed at providing fast internet access to U.S. customers and is laying an extensive fiber-optic network to deliver it. It has launched a three year investment plan Project Velocity IP (VIP) aimed at expanding its wireless and wireline broadband network to attract an additional 1 million business customers by end 2015. This will entail deploying its fiber optic network and provide access to a vast array of security, network and cloud based services. The speed can be gauged by the fact that they are ready to deliver at additional 750 multi-tenant buildings in Florida making fast broadband services available to more than 25000 customer locations.

AT&T is also betting big on U-verse services aimed at domestic consumers. This service will provide speeds of up to 300 Mbps over a fiber optic network and also allow access to TV services. It is pitted against Google Inc. (NASDAQ:GOOG) in this segment but has not shied away from taking the fight to the competitor’s doors. U-Verse revenues grew 38 % last year and subscriptions should now be over the 10 million mark having crossed 9.4 million in the last quarter.

AT&T is also looking at expanding in Europe, a move not supported by some investors and analysts. They cite the unwieldy and complex regulations and fierce competition there.  However AT&T sees a potential for upgrading the legacy broadband services there and reap profits this would entail. It is already exploring possible bids for a European carrier and has identified Vodafone Group plc (LON:VOD) or Spain’s Telefonica (MCE:TEF). Expansion outside the U.S. is the only option left to the company for growth as the home market has matured and growth avenues have shrunk in the recent years.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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