logo
  Join        Login             Stock Quote

AT&T (T) To Invest $14B To Expand Networks, Boosts Dividend; Shares Off

 November 07, 2012 09:35 AM
 


(By Balachander) AT&T Inc. (NYSE: T) will invest $14 billion to significantly strengthen its wireless and wireline broadband networks and the telecommunications giant lifted its quarterly dividend 2.3 percent.

Shares fell 4.20 percent to trade at $33.34 on Wednesday following the news.

The Dallas, Texas-based company said the investment plan – Project Velocity IP (VIP) – expands its high-potential growth platforms, helping drive continued increases in revenues from existing and new products and services, and earnings per share (EPS).

AT&T said it expects EPS will grow in the mid-single-digit or better range during the investment period, with an opportunity for stronger growth going forward.

[Related -T-Mobile US Inc (NYSE:TMUS): AT&T Inc.(NYSE:T) Could Suffer In Wireless War]

The company expects its growth drivers — wireless, wireline data and managed IT services — will consist 90 percent of total revenues by 2016, up from about 80 percent.

"Revenues in our key growth areas — wireless data, U-verse and strategic business services — are all growing at a strong double-digit rate," said AT&T CEO Randall Stephenson. "Project VIP expands our potential in these key platforms and makes them available to many more customers."

AT&T intends to expand its 4G LTE network to cover 300 million people in the United States by year-end 2014, up from its current plans to deploy 4G LTE to about 250 million people by year-end 2013.

[Related -AT&T Inc. (NYSE:T): T-Mobile-Style Plans Should Drive Margins]

In addition, the company plans to buy additional wireless spectrum to support its 4G LTE network. AT&T has acquired spectrum through more than 40 spectrum deals this year, with some pending regulatory review.

Further, the company plans to enhance its wireline IP network to 57 million or 75 percent of all customer locations in its wireline service area by year-end 2015.

Meanwhile, AT&T raised the quarterly dividend rate to $0.45 a share from $0.44, an increase to $1.80 from $1.76 a share on an annualized basis. The dividend will be payable on Feb. 1, 2013, to common stockholders of record on Jan. 10, 2013.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article image3 US Updates Show Ongoing Growth

Three economic updates today provide more evidence that moderate growth endures for the US. The numbers du read on...

article imageBuy These Solar Stocks Before They Snapback

Sometimes the market hands you a gift. And it would be foolish not to take it. Thanks to general market read on...

article imageInvestors Are Even More Euphoric And Confident.

As noted on the blog last Thursday, even though the market had been down for three straight weeks, last read on...

article imageThe Butterfly Machine

There’s a phenomenon called the Butterfly Effect. One common quotation is “It has been said that something read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Sprint Corporation (S): Sprinting To $10?
More Articles on: Utilities



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.