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AT&T, IBM in eCommerce Deal

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AT&T, Inc. (T) and IBM Corp. (IBM) have collaborated to develop a new eCommerce solution that provides an online shopping services platform via mobile application or in-store. The new service will involve cloud, application management and network services offered by AT&T.  

The commercial launch of this new eCommerce solution is expected this year and can be availed through subscription-based packages. We believe the new agreement will enable the company to scale up its business in the wireless segment and enhance service offerings that garner significant market traction.

Collaborations and acquisitions have played significant roles in shaping AT&T’s growth story. In terms of service offerings, the company enhanced its U-verse services by tying up with The Walt Disney Co. (DIS) to deliver three of its products – WATCH Disney Channel, WATCH Disney XD and WATCH Disney Junior. Further, AT&T expanded its business collaboration with Microsoft Corp. (MSFT) by incorporating Microsoft Lync to its Unified Communications portfolio of services.

Apart from enhancing product portfolio, the company is also seeking expansion of its networking capabilities through strategic collaborations. Early this year, the company entered into an agreement with Verizon Wireless to acquire spectrum licenses. The deal was for 39 lower 700 megahertz (MHz) licenses, covering 42 million people in 18 states including major territories such as Chicago, Los Angeles and Miami.

AT&T also plans to buy the remaining portion of Alltel’s wireless operations including spectrum licenses, retail stores and network assets from Atlantic Tele-Networks Inc. Moreover, AT&T aims to enhance its high-speed wireless network to generate more profits from the surging demand for mobile Internet services for smartphones, tablets and other devices

AT&T currently retains a Zacks Rank #3 (Hold).

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