AT&T Pumps $14B USD Into Wired, Wireless Infrastructure Upgrades
November 7, 2012 4:43 PM
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AT&T looks to cover 300 million Americans with LTE, 1 million new business users with wired offerings
In its arms race with the nation's top carrier, wireless giant Verizon Communications, second-place AT&T Inc. (
) is digging deep into its pockets, looking to
pour $8B USD
into infrastructure upgrades.
beats Verizon in speed tests
in select markets and offers better fallback 3G speeds than Verizon, thanks to its HSPA+ network. However, it
But big things are ahead, promises AT&T, saying it will cover 300 million Americans with LTE by the end of 2014 -- about twice its current coverage.
AT&T Chairman and CEO Randall Stephenson cheers, "This is a major commitment to invest in 21st Century communications infrastructure for the United States and bring high-speed Internet connectivity — 4G LTE mobile and wireline IP broadband — to millions more Americans."
[Image Source: Reuters/Shannon Stapleton]
Also announced was a planned $6B USD investment over the next three years to beef up AT&T's wired internet, phone, and television offerings. The investment will allow AT&T to expand its wired internet offerings to an estimated 1 million new business customers, as well as many consumer users.
AT&T has been moving aggressively to expand the reach of
its Uverse service
, which competes with the likes Comcast Corp. (
). AT&T feels that it has a key advantage that cable-only providers don't, in that it can offer customers an additional bundled discount for being phone subscribers.
AT&T also announced that it was bumping its shareholder dividend. That decision was made, says Mr. Stephenson due to AT&T's expectation that despite the large capital expenditures, it anticipates continuing to turn tidy profits over the next few years.
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RE: Still don't get it...
11/8/2012 10:25:16 AM
I do believe he is speaking from a point of view of capacity vs speed.
The higher the data rate available at the tower, the less each customer costs in resources.
More people can use it at any one time if a single sector capacity is 40mb vs 14mb.
RE: Still don't get it...
11/9/2012 7:27:49 PM
maybe in the long run....for certain sites with higher traffic, but for a while I don't see how LTE lowers costs. It's a feature that some customers will pay more for....but hardly a cost cutting technology.
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