Carrier Wars: Here's Why AT&T Is Still a Solid Investmenthttp://www.fool.com/investing/general/2014/04/28/a-few-reasons-why-att-is-still-a-solid-investment.aspx Mukesh Baghel
April 28, 2014
Telecommunications giant AT&T (NYSE: T) fell after its first-quarter earnings report as margin concerns weighed on the stock's performance. AT&T is competing in a tough market where the likes of Verizon Communications (NYSE: VZ) and T-Mobile (NYSE: TMUS) are looking to attract more customers, but the company has done well so far in retaining market share.
In addition, AT&T's strong cash generation and monetization of non-strategic assets have been fruitful and looks set to continue in the future. Let's take a look at the company's prospects to see if it could be a good investment.
Moving forward aggressively
AT&T's LTE platform is growing at a rapid pace in the U.S. It is focusing on price, customer service, technological innovation, network coverage, and quality -- to secure a competitive edge in the market. AT&T expects to reach 300 million people in 2014 with its LTE network, and its improving operations and aggressive strategies should enable it to achieve that target.
Rivals are not sitting idle
This move will lead to a more efficient Verizon network. But AT&T is looking to counter this with its Project VIP, under which it is investing $14 billion in 3 years to upgrade its network.
However, AT&T also needs to watch competition from smaller players such as T-Mobile and Sprint. T-Mobile is focusing on building a more consistent and reliable network. The carrier is using a 4-by-2 multiple input-multiple output technology in Chicago, Dallas, and San Antonio to deliver a better LTE experience. Moreover, as T-Mobile's EDGE network currently covers around 284 million people, according to FierceWireless, an upgrade of this network to LTE will put the company quite close to AT&T in terms of coverage.
More reasons to be positive