The second-largest U.S. mobile service provider AT&T Inc. (T) will debut two 4G Long-Term Evolution (LTE) devices and one smartphone in the U.S. on August 21.
The two devices, USBConnect Momentum 4G and Mobile Hotspot Elevate 4G, will be available at $49.99 and $69.99, respectively, with a two-year contract. The monthly data plan starts at $50 for 5GB with additional GB at $10. The devices will operate on both High-Speed Packet Access Plus (HSPA+) and LTE technology.
The 4G smartphone, BlackBerry Torch 9810, will be priced at $49.99 with a two-year contract. This will be AT&T’s first smartphone in collaboration with Research in Motion Ltd. (RIMM).
AT&T is expected to introduce 20 4G devices in total by the end of 2011, including a large collection of smartphones, tablets, modems and mobile hotspots, in order to maintain its market leadership. The company is expected to release another Research in Motion’s smartphone, BlackBerry Torch 9860, by this year end.
4G services are growing rapidly day-by-day. AT&T plans to roll out LTE-based 4G services later in the year. Initially, AT&T’s services will be available in five cities, namely Atlanta, Chicago, Dallas, Houston and San Antonio. The company expects to spread its services in 15 markets to approximately 70 million Americans by the end of the year. By 2013, AT&T intends to extend its 4G network to the entire American populace.
AT&T is the only company that delivers 4G services using both HSPA+ and LTE technologies. However, AT&T is well behind to its rivals in LTE network deployment. Verizon Wireless, a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group plc (VOD), rolled out the LTE network in 102 markets, reaching around 160 million people as of July 21. The company expects to expand its services to more than 175 markets covering 185 million people by the end of 2011 and virtually its entire nationwide 3G footprint by the end of 2013.
4G services of Sprint Nextel Corp. (S), the third-largest wireless operator, covered 71 U.S. markets and reached 120 million people at year-end 2010. The coverage is likely to touch 130 million by the end of 2011.
AT&T is currently seeking regulatory approval for its proposed $39 billion acquisition of T-Mobile USA that is expected to bolster its network expansion and help in acquiring the pending spectrum. Post merger, AT&T will further expand its 4G LTE technology to almost 97% of the U.S. population. Further, AT&T will become America’s largest mobile phone company surpassing the present leader, Verizon Wireless.
We are currently maintaining our long-term Neutral rating on AT&T. For the short term (1–3 months), the stock retains a Zacks # 3 (Hold) Rank.
RESEARCH IN MOT (RIMM): Free Stock Analysis Report
SPRINT NEXTEL (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
VODAFONE GP PLC (VOD): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment