AT&T Unveils Sponsored Content Store for iOS, Android Users

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The customers of the leading telecom company AT&T Inc. (T) can now enjoy more mobile apps and contents as the company’s partners Syntonic Wireless launched a Sponsored Content Store. Customers can use these mobile apps without changing their current data plan.

AT&T customers using iOS and Android software-based devices can access the Sponsored Content Store. This application will be made available on other operating systems later this summer. However, the number of applications the company will offer is not yet known.

In January, the company announced its plans to offer a toll-free data service that will not consume customers’ monthly allotment for surfing when they visit the sponsors’ websites. We believe that this is AT&T’s strategy of promoting wireless data usage to boost its service revenues. The service would also pave the way for establishing its LTE network in the near-term.

This Zacks Rank #4 (Sell) stock currently faces several limitations with its existing wireless spectrums and is attempting a turnaround by gaining more spectrum licenses. The company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol (VoIP) service providers and aggressive triple-play (voice, data and video) offerings by the cable companies. These are weighing on the company’s revenues and margins.

Other Stocks to Consider

Better-ranked stocks in this sector include Sprint Corp. (S), Chunghwa Telecom Co., Ltd. (CHT) and Mandalay Digital Group, Inc. (MNDL). All these stocks carry a Zacks Rank #2 (Buy).

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