AT&T Unveils G.fast, Expands High Speed Broadband Services

U.S. telecom behemoth,AT&T Inc. (NYSE:T) has initiated the deployment of G.fast based services, which is in line with its efforts to expand its high speed broadband services.

In fact, after a recent successful completion of field trial of G.fast in Minneapolis, the company has commenced the roll out of the service in 22 major metro areas in the United States.

What is G.fast?

G.fast is a digital subscriber line alternative that extends the frequency range and helps operators to offer fiber-like speeds without making the huge investments associated with taking optics directly to homes and offices. Notably, this technology is gradually coming into the limelight.

Telecom operators are currently focusing on increasing their fiber footprint. However, there are areas where fiber networks are yet to reach. Going forward, they are likely to provide alternate solutions for high-speed Internet service through the existing copper networks. Interestingly, G.fast is one such networking protocol that allows higher Internet speeds within a short range of the Incumbent Local Exchange Carrier.

This technology will provide access to high speed broadband, connecting multiple dwelling unit (MDU) subscribers. The service will be distributed over a blend of fiber and coax cable, and is expected to deliver speeds up to 500 Mbps.

However, the company will also utilize the infrastructure of DirecTV, which had wired up a fat number of MDUs with coax for satellite TV. Thus, apart from saving time it will also be a hassle-free process.

With this service AT&T is expected to broaden its broadband subscriber base and improve churn rate trends. This, in turn, will make the company a contender to larger cable operators like Charter Communications, Inc. (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA) .

Price Performance & Zacks Rank

AT&T’s price performance has been dull for the last three months. The stock was down 0.5% against the industry’s gain of 1.1% in the same period. It currently carries a Zacks Rank #3 (Hold).

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

Stocks to Consider

Investors interested in the broader Computer and Technology sector may also consider America Movil SAB (NYSE:AMX) , which has expected Earnings per share growth of 55.87% over the last three to five years. The company currently holds a Zacks Rank #2 (Buy).

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