AT&T, Inc. (T) has joined hands with one of Canada’s leading telecom and media carriers, Rogers Communications Inc. (RCI), to provide its U.S. customers with LTE network services while in Canada. The news signifies a big move in the U.S. telecom arena since it is the first time any U.S. carrier has expanded its services to offer international LTE roaming. The new agreement will not only give added facility to the existing customers but also foster new customer addition.
As per the deal, AT&T’s international LTE roaming services will come under Data Global Add-on packages, starting as low as $30 per month for 120MB. In addition, customers can also avail higher priced packages at $60 for 300MB and $120 for 800MB.
Earlier, in Sep 2013, AT&T and Rogers already undergone a pact for proving LTE roaming services to the latter’s customers in Canada while roaming in the U.S. Under the agreement, Rogers’ subscribers, during their U.S. travels, are entitled to 4GLTE wireless roaming service facility at only $7.99 per day.
This package includes 50 MB of daily data usage. Moreover, after this deal Roger became the first Canadian carrier to offer roaming service in the U.S. Subsequently, Rogers gained a competitive edge over Canadian carriers like TELUS Corp. (TU) and BCE Inc.
AT&T too has made significant developments through various agreements and acquisitions, in an otherwise highly mature and competitive wireless market.
In Sep 2013, the company announced its plans to expand in the Latin American market through tie-ups with Leading Latin American telecom carrier – America Movil.
AT&T now expects to extend beyond key countries like Mexico and Brazil to countries like Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru and Uruguay. The company already signed a network sharing agreement with America Movil in Nov 2012. Per this agreement, AT&T can expand and enhance networks within Latin America and offshore key markets throughout the world, including growth regions like, Asia and the Middle East.
We believe AT&T’s strategic alliance with America Movil to grow in South America was reflective of Verizon Communications Inc.’s (VZ) intention to step into the Canadian Telecommunication market. Though, Verizon Communications later backed out after acquiring the remaining 45% stakes in Verizon Wireless.
Further, AT&T struck a global networking services deal with New Zealand-based Opus International Consultants.
Going forward, we foresee significant revenue sources from AT&T’s collaboration with mega carriers in different countries on various services. These deals are expected not only to expand the company’s reach beyond its home turf, but also help establish a foothold in the international market and re-brand it as a global wireless operator.
AT&T has a Zacks Rank #3 (Hold).
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