Expansion of AT&T GigaPower
AT&T (T) continues to boost its Internet proposition by expanding the markets covered by AT&T GigaPower. Recently, the telecom player expanded GigaPower to select locations, inclduing Kansas City, Los Angeles, Oklahoma City, and Atlanta.
The recent Jefferies Technology, Media, and Telecom Conference occurred on May 12, 2016. Scott Mair, the telecom company’s senior vice president of technology planning and engineering, highlighted the planned expansion of AT&T GigaPower.
Mair noted, “We have today, really dense, good fiber environment. We’re building that out with even more FTTP. So we have about 1.6 million customers today that can get up to a 1-gigabit per second service from us. That’s in 21 markets. So we’ll be moving that to almost doubling – in fact, more than doubling that this year to 56 markets. So we’re continuing to build out a really, really good strong fiber footprint.”
AT&T plans to expand GigaPower to more than 14 million locations.
AT&T GigaPower service
AT&T’s GigaPower is a fiber-based video, Internet, and voice service that is similar to Verizon’s (VZ) FiOS. GigaPower is capable of providing Internet speeds up to 1 Gbps (gigabits per second), subject to certain conditions. FiOS’s maximum symmetrical Internet speed is 500 Mbps (megabits per second). These fiber-based services may be compared to the offerings of cable players such as Comcast (CMCSA) and Time Warner Cable (TWC).
For a diversified exposure to select telecom companies in the US, you may consider investing in the SPDR S&P 500 ETF (SPY). SPY held ~2.7% of its portfolio in AT&T, Verizon, CenturyLink (CTL), Frontier Communications (FTR), and Level 3 Communications (LVLT) at the end of April 2016.