Market Overview

AT&T Is Investing $2 Billion On Improving Service In This State

Share:

AT&T Inc. (NYSE: T) has invested nearly $2 billion over the past three years improving its service coverage in the state of Indiana. The efforts are a part of the company's Project Velocity IP (VIP) initiative to expand and improve its services nationwide.

The initiative includes upgrades to AT&T's reliability, coverage, speed and performance.

About VIP

In 2014 alone, AT&T made more than 330 wireless network upgrades in Indiana. These upgrades include new cell sites, increased network capacity, and new high-speed wireless Internet connections.

Bill Soards, president of AT&T Indiana, recently discussed the growing importance of network reliability.

"With a growing range of connected home appliances, cars and wearable devices, network connectivity is more important than ever before," Soards explained.

Related Link: Analysts See Lower Consensus For AT&T

Other VIP Projects

In addition to Indiana, AT&T has been heavily investing in network improvements in other locations as well in a constant battle to out-perform rival Verizon Communications Inc (NYSE: VZ).

AT&T has spent nearly $200 million since 2012 improving its networks in New Mexico. The company has also spent more than $400 million during the same period on the Boston area alone.

AT&T's Network Sales Pitch

AT&T boasts that it "provides the nation's most reliable 4Q LTE network today."

AT&T also claims to have the strongest LTE signal in the U.S. The company was recently named Fortune's Most Admired Telecommunications Company for 2015.

telecoms.png

Share Prices Lag

Shareholders of AT&T have not been impressed by the company's efforts, but AT&T is not alone in its poor stock performance.

Over the past year, shares of AT&T, Verizon, Sprint Corp (NYSE: S) and T-Mobile US Inc (NYSE: TMUS) have all lagged the S&P 500.

Posted-In: News Events

 

Related Articles (S + T)

View Comments and Join the Discussion!

EUR/USD Lower Ahead Of Data

Janet Yellen Is 'Doing The Right Thing'