AT&T (NYSE: T ) announced today that it will be investing $14 billion over three years to expand its 4G LTE network (wireless) as well as its wired IP broadband network. The 4G LTE network is expected to cover 300 million people, or roughly the entire population of the U.S., by the end of 2014. That's up from previous plans to cover 250 million people by year-end 2013.
AT&T calls the investment plan Project Velocity IP (VIP). It's expected to be about $14 billion over three years -- $8 billion for wireless initiatives and $6 billion for wireline initiatives. Total capital spending is expected to be $22 billion for each of the next three years, AT&T said.
AT&T also announced that it thinks EPS will grow in the mid to single digits in the next three years, but after that should be able to grow more quickly. The company also announced a quarterly dividend increase of about 2.3%; its 29th consecutive annual increase.The board increased the quarterly dividend from $0.44 to $0.45 per share, an increase from $1.76 to $1.80 a share on an annualized basis.