Updated Aug 6 at 2:39pm ET.
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AT&T has chosen Ericsson to provide specialized dual-band radios that will help the company use the wireless spectrum it recently bought from EchoStar. Spectrum refers to the invisible airwaves that carry data between cell towers and phones. By putting this new spectrum to work, the company can improve its network performance and reliability for customers across the country. This move is a routine but necessary part of maintaining a competitive network. To keep customers from switching to rivals, AT&T must constantly upgrade its physical infrastructure to handle more data and provide better signals in more places.
Source: PRNewsWire
The company has launched a new version of its tablet for kids, which now runs on its 5G network. AT&T is currently the only major carrier with a full line of devices built specifically for children, which it uses to attract families to its monthly service plans. While a single device launch does not change the company's overall value, it supports the strategy of finding niche ways to keep families locked into the AT&T ecosystem. If parents buy these specialized devices for their children, they are less likely to switch their entire family's wireless service to a competitor.
Source: PRNewsWire
SpaceX is moving beyond just providing internet to remote areas and now plans to compete directly for the customers of major carriers like AT&T. Its Starlink Mobile service can already provide coverage in dead zones where traditional cell towers cannot reach, and the company intends to expand this into a complete wireless service.
This is a potential long-term threat to AT&T's core business. While building a nationwide network of towers is incredibly expensive and gives AT&T a massive advantage today, SpaceX is trying to bypass that physical barrier by using satellites. If they can offer reliable service without the high costs of maintaining ground infrastructure, it could eventually force AT&T to lower its prices to keep customers.
AT&T, T-Mobile, and Verizon have all agreed to support a new security technology called MagicalAuth. This system uses hardware-based security on phones rather than traditional text-message codes, which are becoming easier for hackers to intercept using artificial intelligence. By working together on a single standard, the carriers make it easier for banks and apps to verify that a user is who they say they are. For AT&T, reducing fraud on its network helps lower its own costs and makes its service more valuable to business customers who need high levels of security.
Source: Business Wire
AT&T has reached an agreement with AZIO AI to be the primary provider of fiber interconnectivity for a massive new data center platform. These centers house the powerful computers used to run artificial intelligence, and they require enormous amounts of high-speed data capacity to function.
This deal shows how AT&T can profit from the AI boom without building the AI itself. By owning the physical fiber lines that these data centers need to talk to the rest of the world, AT&T is positioning itself as essential infrastructure. This provides a steady, long-term source of revenue that is separate from its traditional phone business.
Analysts recently issued a flurry of rating updates and price target adjustments to reflect the company's shifting competitive landscape. Most analysts are split with 26 buys and 36 neutral or bearish ratings, but the average target suggests 14% upside.
The company has cleared its earnings targets for eight straight quarters. Management has a clear track record of setting reachable goals and then consistently meeting them.
| Expectation | |
|---|---|
| EPS | $0.62 |
| Revenue | $31.69B |