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This week, AT&T (NYSE: T) launched 5G service in 90 new cities.
It’s the latest move by America’s No. 2 wireless company to increase capacity.
Internet usage has surged more than 70% since the coronavirus outbreak began.
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New cities with AT&T 5G service include Chicago, Madison, New Orleans, Sacramento, Seattle and Tampa. The cities will get access to the low-band 850MHz network.
AT&T 5G now covers 190 cities across the U.S. And it reaches over 120 million people.
This news marks the biggest expansion of 5G service from the company. The company’s CEO says that they’ll have nationwide 5G service available in 2020.
AT&T previously planned to be live nationwide by summer. However, the company is pushing that timeline back to “mid-year.” The pushed-back timeline reflects permitting delays as a result of local government offices being closed.
Earlier this year, AT&T suspended a $4 billion share repurchase plan that was slated for March.
Instead, the company plans to use the cash to invest in infrastructure including broadband and 5G networks.
On April 22, AT&T reported first-quarter earnings.
AT&T’s revenues dropped 4.4% during the first three months of the year. Meanwhile, quarterly adjusted earnings per share were $0.84 versus $0.86 last year.
The company explained that the outbreak reduced its quarterly EPS by $0.05.
The press release confirmed AT&T’s commitment to 5G . . .
“We have a strong cash position, a strong balance sheet, and our core businesses are solid and continue to generate good free cash flow — even in today’s environment. In light of the pandemic’s economic impact, we’ve already adjusted our capital allocation plans and suspended all share retirements.
We’re able to continue investing in critical growth areas like 5G, broadband and HBO Max, while maintaining our dividend commitment and paying down debt.”
The pandemic means millions of Americans are learning and working from home. And that’s creating more demand than ever before for high-speed internet.
Companies like AT&T are responding to the challenge. And a small group of undiscovered 5G tech stocks stand to reap the biggest gains.
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Yours in Health & Wealth,
Ian Wyatt