Revenge of the Nerds: AT&T Proves It's Hip to Be Square

This week, AT&T (NYSE: T  ) proved it's cool to be a nerd, unleashing a new ad campaign designed to appeal to nerds, geeks, and everyday consumers around the world. This telecommunications provider's new commercials highlight two nerdy field-service technicians upgrading AT&T's network in an office, and explain how it works (in the simplest terms) to employees. Each ad concludes with the message, "Building a Better Network," a mission AT&T intends to follow now and into the future.

How is AT&T building a better network?
Building a better network starts from the top, and AT&T officials are investing in the company's everyday operations to ensure clients get the support they need. For example, AT&T invested $6.55 billion in wireless and wired networks in Texas from 2011-2013. These investments have brought more jobs to Texas and spurred business growth in the area.

AT&T Regional Vice President Holly Reed told the Dallas Business Journal that her organization will continue to invest in the Lone Star State. "Technology drives the speed of commerce," Reed said. "We're proud of this three-year investment that we've made. This continues to help us serve our customers and our business customers every single day."

Just as AT&T bolsters its wireless and wired networks in Texas, this telecommunications corporation could conduct similar upgrades in other areas to enhance service across the country.

AT&T is making waves among telecommunications providers
Network investments could help AT&T improve its global reputation and ensure that its stock price rises. Enhanced wireless and wired networks mean better service for AT&T's business and residential clients, which could translate into profit and revenue increases.

Verizon  (NYSE: VZ  ) and T-Mobile  (NYSE: TMUS  ) are two telecommunications providers that could be affected by AT&T's recent moves. While both of these companies are well-positioned for long-term growth, each faces unique challenges in the telecommunications market.

Verizon shares rose 18% last year, but CEO Lowell McAdam recently admitted that new products and reduced costs for consumers won't necessarily help Verizon boost its profits. Instead, McAdam said he anticipates that the appeal of delivering high-quality videos over wireless devices will help his company extend its reach. But, the telecommunications market offers no guarantees, and if Verizon cannot keep pace with AT&T's marketing efforts and network upgrades, it risks losing money in 2014.

Conversely, T-Mobile has been aggressive in its efforts to garner attention from consumers. T-Mobile is buying out rivals' customers from their contracts and providing cheaper alternatives, which has helped it add 2 million monthly subscribers over the past three quarters. In fact, AT&T has taken a page out of T-Mobile's playbook by helping customers get out of contracts with existing telecommunications providers. As a result, both companies could boost revenues soon.

The bottom line on telecommunications providers
AT&T and T-Mobile appear to be heading in the right direction, but Verizon has its work cut out if it hopes to keep pace with its chief rivals. Proactive marketing campaigns by AT&T and T-Mobile, combined with Verizon's poor response thus far, will influence the telecommunications market for years to come. If more consumers switch to AT&T or T-Mobile, Verizon could be forced to make drastic network or price changes to get consumers' attention in a highly competitive marketplace.

Learn how you can profit from the smartphone wars
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2881452, ~/Articles/ArticleHandler.aspx, 9/24/2014 12:27:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement