AT&T (T) Aims to Enhance Nationwide 5G and Fiber Connectivity

·5-min read

AT&T Inc. T, one of the prominent wireless network providers, recently reported that it is making crucial investments in critical areas to enhance nationwide connectivity and capacity and improve the robustness of existing network infrastructure. The company reported that its coverage area had reached more than 2.91 million square miles and its 5G network now covers 290 million people across the U.S.

The organization has spent more than $140 billion over the past five years building network infrastructure in the country, and it plans to keep up this trend to connect more people. The company's fiber network has expanded by more than 60,000 miles in 2022, enabling an increase of 23% in data traffic on a daily average over the previous year.

In some tribal and rural areas, access to premium connectivity is still an issue, and the digital divide continues to be a hindrance to the overall growth potential. AT&T is investing to address this digital inequality and increased coverage by more than 40% on federally recognized tribal lands in the last two years. It is also taking the initiative to construct a space-based cellular broadband network to ensure reliable and fast broadband connectivity in remote and difficult-to-reach locations.

Moreover, drastic climate change is a major issue today and its impact on the weather and ecology cannot be ignored. Natural calamities often lead to the destruction of network infrastructure and affect commercial activities in the region. AT&T’s innovation and important investment in power back systems mitigated the probability of major outages by 35%.

AT&T, with its advanced climate change analysis tool, aims to make data-driven decisions to enhance the durability of its infrastructure. The company is considering all aspects and is ready to extend itself to provide optimum, seamless service to end users and build the network for tomorrow.

The company is benefiting from the 5G boom. As the first carrier in the industry, the company has unveiled its 5G policy framework that will hinge on three pillars — mobile 5G, fixed wireless and edge computing. To have a seamless transition among Wi-Fi, Long-Term Evolution (LTE) and 5G services, AT&T intends to deploy a standards-based nationwide mobile 5G network. Its 5G service entails the utilization of millimeter wave spectrum for deployment in dense pockets while in suburban and rural areas; it intends to deploy 5G on mid- and low-band spectrum holdings. It believes that as the 5G ecosystem evolves, customers can experience significant enhancements in coverage, speeds and devices

The company anticipates gaining a competitive edge over rivals through edge computing services that allow businesses to route application-specific traffic where they need it and where it’s most effective — whether that’s in the cloud, the network or on their premises. Through its Multi-access Edge Compute solution, the company offers the flexibility to manage the data traffic better. AT&T expects edge computing solutions to be widely available in autonomous vehicles, drones, robotic production lines and autonomous forklifts in the near future.

AT&T has lost 20.8% in the past year against the industry’s decline of 13.5 %.

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AT&T currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe

Splunk Inc. SPLK, sporting a Zacks Rank #1, delivered an earnings surprise of 131.1%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 83.78%. Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company's offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.

Its software has a broad range of applications, including security analytics, business analytics and IT operations. Splunk is benefiting from healthy customer engagement, evident from the consistently high net retention and competitive win rates alongside solid momentum with large orders overall.

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