AT&T Inc. (T) has launched it long-awaited 4G Long-Term Evolution (LTE) wireless networks in the U.S. The LTE offers mobile broadband speeds up to 10 times faster than 3G.
The company has initially launched its services in five cities namely Atlanta, Chicago, Dallas, Houston and San Antonio and looks to cover approximately 15 markets and 70 million Americans by the end of the year. By 2013, AT&T intends to extend its 4G network to the entire American populace.
Only AT&T, the second-largest U.S. mobile service provider, delivers 4G services using both High-Speed Packet Access Plus (HSPA+) and LTE technologies. However, it is still well behind its rivals in LTE network deployment.
Verizon Wireless, a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group plc (VOD), has already rolled out the LTE network in 102 markets, covering 160 million people as of July 21. By this year end, Verizon expects to expand its services to more than 175 markets, covering 185 million people. Sprint Nextel Corp. (S), the third-largest wireless operator, was the first to launch 4G services last year and expects to have 130 million users by the year end.
MetroPCS Communications Inc. (PCS) provides 4G LTE services primarily in major metropolitan areas in the U.S., including Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco and Tampa/Sarasota. But the company has 4G footprint expansion plans to the other U.S. metropolitan cities slated for this year.
The move to LTE network would work in favor of AT&T’s acquisition of T-Mobile that is currently being reviewed by the regulatory watchdogs.
Further, AT&T is expected to introduce 20 4G devices by the end of this year, including a large collection of smartphones, tablets, modems and mobile hotspots, in order to maintain its leadership in the related markets. The company currently offers four 4G devices ––HTC Jetstream tablet, USBConnect Momentum 4G, Mobile Hotspot Elevate 4G and USBConnect Adrenaline.
We are currently maintaining our long-term Neutral recommendation on AT&T with the Zacks #3 (Hold) Rank.
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