Category Archives: oud

AT&T Push Into Mexico Vs. America Movil Looking Good So Far

AT&T ’s ( T )push into Mexico’s wireless phone market seems to be gaining traction vs. incumbent America Movil ( AMX ), analysts say. AT&T said it added 529,000 wireless subscribers in Mexico in Q1, with one-fourth the higher-spending postpaid customers who are billed monthly. Late Tuesday, AT&T reported that its Q1 operating loss was $251 million, amid network investments and subscriber acquisition costs. “This is now the second consecutive quarter with 500,000 plus net adds, giving us confidence in the execution of the strategy abroad,” said Amy Yong, a Macquarie analyst, in a report. “Profitability is also expected to improve by the second half of 2016. We expect free cash flow contribution could come as early as 2017.” AT&T and America Movil both acquired more radio spectrum in a radio spectrum auction held by the Mexican government last quarter. In the U.S., AT&T said it lost postpaid phone lines for the sixth consecutive quarter amid stiff competition from Verizon Communications ( VZ ), T-Mobile US ( TMUS ) and Sprint ( S ). AT&T acquired Mexico’s No. 3 wireless firm, Iusacell, as well as Nextel Mexico out of bankruptcy, for a combined $4.4 billion. It’s spending over $3 billion to upgrade networks to 4G technology. With the Q1 gain, AT&T has 9.2 million total wireless subscribers in Mexico. AT&T’s subscriber gains could accelerate after it finishes the 4G network upgrade, says Colby Synesael, an analyst at Cowen & Co. America Movil, which sells wireless services under the Telcel brand in Mexico, holds nearly 68% of the market, with Telefonica ( TEF ) at 19% and AT&T at 13%. Controlled by Carlos Slim, America Movil is one of Latin America’s two largest wireless services providers, along with Telefonica.

Why Investors Should Be Ecstatic About Microsoft Corporation's "Poor" Earnings

It’s difficult to point to one particular “problem” with Microsoft ‘s recent fiscal 2016 Q3 earnings. Both revenue and earnings per share were in line with expectations, but that didn’t appease either the Street or

Comcast Not Sweating Over Verizon, AT&T 5G Fixed Wireless Plans

After Verizon Communications ( VZ ) again trumpeted plans to deploy 5G wireless services vs. cable TV and other phone companies in the residential broadband market, Comcast ( CMCSA ) on its Q1 earnings call said it’s not fretting. Both Verizon and AT&T ( T ) have recently touted 5G speeds up to 1 gigabit per second. That’s roughly 50 times faster than the average speed of today’s top 4G mobile phone networks, in good conditions. At a meeting with sell-side analysts on Monday, Verizon said it’s aiming to deploy early-stage 5G service in a couple of markets as soon as next year, and have a commercial fixed-wireless residential product ready before 2020. Asked about Verizon’s plans on Comcast’s Q1 earnings call on Wednesday, Comcast CFO Mike Cavanagh said: “5G is an exciting new platform, and it’s still in the very early days. We think that the propagation distance is fairly short, about a 300-foot radius. The antennas are going to need space and power and backhaul, and … the spectrum doesn’t really pass through objects like trees and buildings very well.” The Federal Communications Commission in October opened a study looking at 28, 37, 39 and 60 GHz as the primary frequency bands for 5G. Most wireless phone services today use radio frequency below 3 GHz. In the late 1990s, several startups (WinStar, Teligent, Nextlink) attempted to commercialize products relying on high-frequency airwaves. When the tech bubble burst in 2000-01, the startups perished. Verizon has said this time will be different because of improved antenna technology and other factors, as IBD has reported. Comcast says if 5G fixed wireless takes off, it’ll could be a player, too. “We think we’re very well-positioned,” added Cavanagh. “We’re going to continue to monitor. It’s still early in the game.” Boosting signal strength at higher frequencies is a challenge for wireless firms. Low-frequency airwaves travel over long distances and through walls, improving in-building service. Colby Synesael, an analyst at Cowen & Co., said in a research report Tuesday that “mass deployment of residential fixed wireless has been an elusive last-mile aspiration for carriers for more than a decade.”