U.S. markets closed
  • S&P 500

    -72.20 (-1.64%)
  • Dow 30

    -370.46 (-1.08%)
  • Nasdaq

    -245.14 (-1.82%)
  • Russell 2000

    -28.28 (-1.56%)
  • Crude Oil

    -0.08 (-0.09%)
  • Gold

    -27.20 (-1.38%)
  • Silver

    -0.16 (-0.65%)

    -0.0006 (-0.05%)
  • 10-Yr Bond

    +0.1310 (+3.01%)

    -0.0049 (-0.40%)

    -0.6420 (-0.43%)
  • Bitcoin USD

    -629.74 (-2.31%)
  • CMC Crypto 200

    -9.95 (-1.73%)
  • FTSE 100

    -53.03 (-0.69%)
  • Nikkei 225

    -452.75 (-1.37%)

AT&T (T) Launches Gigapower JV as Commercial Fiber Platform

AT&T Inc. T has inked a definitive agreement with asset management firm BlackRock for an undisclosed amount to form a joint venture that will operate a commercial fiber platform to tap the lucrative fiber optic business. Dubbed Gigapower LLC, the joint venture initiative with BlackRock Alternatives will seek to provide a best-in-class fiber network to Internet Service Providers (ISPs) and other businesses across the country.

Leveraging its extensive fiber network and nationwide sales capabilities, AT&T aims to utilize Gigapower to commercially deploy a fiber network at 1.5 million customer locations outside the perimeter of its traditional 21-state wireline service footprint. This is likely to spur economic development in each of the communities in which Gigapower will operate.

This fiber deployment will be in addition to AT&T’s existing target of more than 30 million fiber locations, including business locations, by the end of 2025. The incremental revenues from this joint venture and its likely impact on cash flow owing to capital investments are likely to be disclosed in the 2023 financial guidance slated to be released in concurrence with the fourth-quarter results.

AT&T plans to deploy a standard-based nationwide mobile 5G network to obtain a seamless transition of Wi-fi, 5G devices and Long-Term Evolution. It intends to deploy 5G on low and mid-band spectrum holding.

The company is uniquely positioned to benefit from the upcoming 5G boom. As the first carrier in the industry, AT&T has presented its 5G policy framework that will stand on three vital pillars — fixed wireless, edge computing and 5G. It is focusing on a fiber densification strategy, which is anticipated to enhance broadband connectivity for consumers and enterprises, alongside 5G deployments boosting the end-user experience.

AT&T has acquired 80MHz of mid-band spectrum in the C-Band auction for a total consideration of $27.4 billion. These airwaves offer better propagation characteristics for optimum coverage in urban and rural areas. Through its Multi-access Edge Compute solution, the company offers the flexibility to manage data more appropriately. It leverages an indigenous software-defined network to provide low-latency, high-bandwidth applications for faster access to data processing.

The stock has lost 26.3% in the past year compared with the industry’s decline of 15%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TESSCO Technologies Incorporated TESS, sporting a Zacks Rank #1, delivered an earnings surprise of 126.1%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 44.3% since December 2021.

TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.

Harmonic Inc. HLIT, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 55.5%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 48.6% since March 2021.

Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.

AudioCodes Ltd. AUDC, sporting a Zacks Rank #1, is likely to benefit from secular tailwinds related to IP-based communications. Incorporated in 1992 and headquartered in Lod, Israel, it offers advanced communications software, products and productivity solutions for the digital workplace. It has a long-term earnings growth expectation of 9%.

AudioCodes aims to leverage its long-term partnership with Microsoft to further strengthen its market position. It is also likely to benefit from its continued focus on high-margin businesses.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AT&T Inc. (T) : Free Stock Analysis Report

Harmonic Inc. (HLIT) : Free Stock Analysis Report

AudioCodes Ltd. (AUDC) : Free Stock Analysis Report

TESSCO Technologies Incorporated (TESS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research