Telecom Stock Roundup: AT&T Enters Video Gaming, ARRIS-Google Team Up & More
Zacks Investment Research | Jun 06, 2018 09:34PM ET
In the last five trading days, telecom stocks declined initially but gradually picked up pace as U.S.-China trade talks offered some hope of averting a trade war as the Trump administration reportedly gave the finishing touches on a deal with ZTE (HK:0763).
Last week, as the ZTE settlement appeared to be on the horizon, another Chinese telecom firm Huawei filed its response to the FCC (Federal Communications Commission) in a strong rebuttal, denying allegations of being a U.S. security threat. Accusing FCC of being prejudiced due to the location of its domiciled headquarters, Huawei contested the decision of banning it from accessing the $8.5 billion Universal Service Fund (“USF”), which is a key source of funds for the rollout of 5G and gigabit broadband projects in the United States. The beleaguered firm also found support in industry trade group CTIA, which argued that the industry was equipped with effective security and design networks to be safe and reliable, and restricting the access to USF would only hinder competition and harm customers.
Amid these conundrums, the National Telecommunications and Information Administration (“NTIA”), a division of the U.S. Department of Commerce, vouched its support for start-up firms to integrate blockchain technology into their systems. The agency also released a ‘notice of enquiry’ to solicit ideas relating to emerging technologies, cybersecurity and privacy, internet governance and information free-flow. The collated information is likely to be used as a guideline by NTIA’s international Internet policy to create regulations for various sectors.
Regarding company-specific news, new business ventures, improved product launches for superior connectivity and high-quality content to subscribers at lower cost of ownership, and technology collaborations ruled the roost over the last five trading days.
Recap of the Week’s Most Important Stories
1. AT&T (NYSE:T) has ventured into the competitive video-gaming arena by collaborating with ESL, the largest esports powerhouse in the world, to stay connected with customers.
AT&T will leverage its sports brand image to tap the huge revenue-generating potential of this emerging industry through brand promotions and on-site activations. This will help the company to actively engage with fans through superfast Wi-Fi connections and convenient charging stations, displaying the latest offerings through immersive experiences and demos. (Read more: Zacks Investment Research
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