AT&T (T) is set to tap the 4G smartphone market with its launch of HTC Vivid and Samsung Galaxy S II Skyrocket on November 6. Since its biggest rival, Verizon (VZ), entered the 4G market, the company was gearing up to make its much awaited foray in this segment.
The two dual-core Android-based smartphones are designed to offer improved accessibility to users as they remain the only smartphone using the high frequency Long-Term Evolution (LTE) and High-Speed Packet Access Plus (HSPA+) technology for faster connection within or outside LTE wireless networks. Further, these will mark the twentieth and twenty first 4G devices by AT&T, in concurrent with the company’s plan to introduce 20 4G devices in this year.
AT&T is pursuing a number of strategies to tap opportunities in the wireless data market and currently operates the nation's fastest mobile broadband network. In September, AT&T introduced its 4G LTE wireless networks in the U.S. that offer mobile broadband speeds up to 10 times faster than 3G. Initially, AT&T will deploy this service in 9 markets including Atlanta, Chicago, Dallas-Fort Worth, Houston and San Antonio, and will further expand to 15 markets and 70 million U.S. population by the year end.
Going forward, AT&T plans to extend its 4G network to the entire American populace b by 2013. Post T-Mobile merger, AT&T is expected to expand its 4G LTE technology to almost 97% of the U.S. population. This implies that 55 million more Americans mostly in rural and smaller communities will come under its coverage.
Currently, we maintain our long-term Neutral recommendation on AT&T supported by a Zacks #3 (Hold) Rank.
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