Currently, AT&T (T) is deploying its commercial 5G mobile services across the US.
AT&T 5G reached 21 cities
In August, AT&T reached 21 cities with its 5G mobile phone service. Earlier in the month, the company introduced its mobile 5G service in certain parts of New York City. AT&T seeks nationwide mobile 5G coverage by mid-2020. The company is working with equipment manufacturers like Ericsson, Samsung, and Nokia to build its 5G network.
AT&T’s management said, “We will also introduce 5G broadly over sub-6GHz in the coming months.” The company also said, “Providing 5G over multiple spectrum bands will enable our customers to benefit from the ultra-fast speeds of 5G millimeter wave as well as the broader coverage ranges of 5G sub-6.”
AT&T’s 5G network deployment benefits from its FirstNet agreement. According to an RCRWireless News report on August 6, “Winning the FirstNet contract provided the opportunity to do everything.” The report also said, “That includes deploying FirstNet’s 700 MHz spectrum while simultaneously putting AWS 3 and WCS spectrum into service, rolling out gigabit LTE features like 4X4 MIMO, 256 QAM and carrier aggregation and installing 5G-ready equipment.”
Competition for AT&T 5G
In the 5G space, AT&T competes with Sprint (S) and T-Mobile (TMUS). Sprint and T-Mobile are also working on the 5G network rollout. On Tuesday, Sprint launched its 5G network in certain parts of four cities—Los Angeles, Phoenix, New York City, and Washington, DC. Earlier this year, Sprint launched its mobile 5G service in parts of Dallas-Fort Worth, Atlanta, Chicago, Houston, and Kansas City. In June, T-Mobile’s 5G service went live in certain parts of six US cities.
T-Mobile is looking forward to merging with Sprint. The two companies think that the merger deal could speed up their 5G network expansion. If the merger deal goes through, the combined company will invest up to $40 billion over the next three years on network developments, especially the 5G network.
The T-Mobile and Sprint merger agreement faces a lawsuit from 16 state attorney generals due to antitrust concerns. Read Why Critics Want Public Review of T-Mobile–Sprint Merger and Is the Way Clear for the T-Mobile and Sprint Merger? to learn more about the merger deal.
AT&T is counting on 5G to drive growth
Industry observers expect 5G connectivity to enhance coverage, boost speeds, and improve network reliability. Overall, 5G technology should boost mobile operators’ revenue opportunities. As a result, AT&T has worked hard to roll out its 5G services.
AT&T stock closed 0.69% higher on Wednesday at $34.96. The stock is trading 1.52% lower from its 52-week high of $35.50. The company is trading 30.45% higher than its 52-week low of $26.80. On Wednesday, T-Mobile stock fell 0.08% and closed at $77.06. In contrast, Sprint stock rose 1.79% to $6.82.
AT&T stock has risen 22.5% YTD (year-to-date). The stock has returned 2.4% in the trailing one-month period and 7.0% in the trailing 12-month period. In comparison, Sprint and T-Mobile have seen their stock prices rise 17.2% and 21.1%, respectively, YTD.
AT&T’s market capitalization is $255.5 billion, while T-Mobile and Sprint stand at $65.8 billion and $27.9 billion.
Read AT&T Stock: How Much Upside Is Left? to learn more about the company’s valuation and analysts’ recommendations.