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November 8, 2012

AT&T to invest $14bn to expand wireless and wired networks in US

Total capital investment is expected to be about $22bn for each of next three years

By CBR Staff Writer

AT&T is planning to invest about $14bn over the next three years to expand and improve its wireless and wired broadband IP network infrastructure in the US.

About $8bn of the total investment, will be invested in the network that serves mobile data and calling and the remaining will be invested on wireline equipment, while the company said total capital investment is expected to be about $22bn for each of next three years.

The investment plan – Project Velocity IP (VIP) is also expected to support the Dallas based firm’s plans to expand its 4G LTE service to 300 million people by the end of 2014, with its earlier expansion plans for 250 million people by the end of 2013.

AT&T chairman and chief executive officer Randall Stephenson said the investment will bring high-speed Internet connectivity 4G LTE mobile and wireline IP broadband to millions more people in the US.

"We have the opportunity to improve AT&T’s revenue growth and cost structure for years to come, and create substantial value for shareowners," Stephenson said.

"Project VIP expands our potential in these key platforms and makes them available to many more customers."

AT&T is also planning to install small-cell technology, macro cells and distributed antenna systems which will increase the density of its wireless network and to enhance the quality of its network.

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During the period, AT&T is planning to increase its high-speed U-Verse TV, Internet and VOIP service by more than one-third to 8.5 million customer locations and offer increased U-Verse speeds of about 75 Mbps.

The plan includes several capital enhancements also being executed by Verizon Communications as well as Sprint.

AT&T is anticipating its fibre network to reach an additional 1 million customers by the end of next three years.

During the next three years, the firm is also projecting a mid-single digit percentage rate rise in its per-share earnings, consolidated revenues will grow to GDP plus 100 basis points along with expansion of consolidated margins.

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