3 Telecom Stocks Seeing Action: AT&T’s Fiber Fighter, Verizon Ups FiOS Fees, T-Mobile Drops Downpayments
AT&T (NYSE:T): In the wake of Google’s (NASDAQ:GOOG) announcement that Google Fiber would be coming to AT&T’s home turf of Austin, Texas, AT&T responded by revealing it will upgrade its Austin U-verse infrastructure to offer 1Gbps connections to residents. U-verse with GigaPower — as the company has called it — will initially offer 300Mbps connections to ”tens of thousands of customer locations throughout Austin,” while 1Gbps connections will be offered by mid-2014. Google Fiber is set to launch in Austin in late 2014.
Verizon Communications (NYSE:VZ): Turner Broadcasting, a property of Time Warner (NYSE:TWX), reached a long-term agreement with Verizon’s FiOS service for carriage of its cable networks, making it the second major distribution deal that the company has secured as it ramps up the fees it collects from pay-TV providers. The Wall Street Journal reports that Time Warner CEO Jeff Bewkes told Wall Street that the company expects double-digit percentage increases in carriage fees as it goes through a round of renewals with cable, satellite, and telecom companies in the three years ending in 2016.
T-Mobile US (NYSE:TMUS): T-Mobile has lowered the downpayments needed on an array of different smartphones, removing another barrier for consumers to get their hands on a higher-end device. Notably, not all phones have had their payments eliminated.
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