3 Telecom Stocks Seeing Action: AT&T’s Solid Quarter, Verizon Grants Droid Exclusivity, and Sprint Goes Underground
AT&T (NYSE:T): Second-quarter earnings per share of 67 cents missed expectations by 1 cent as revenue of $32.1 billion beat by $0.29 billion. The company added 551,000 wireless postpaid subscribers, of which 398,000 were from tablets, up from 296,000 in the first quarter. AT&T also added 11,000 prepaid subscribers, up from the 184,000 it lost in the first quarter. Wireless service revenue grew 4.1 percent, riding on the 19.8 percent increase in data services. In total, 6.8 million smartphones were sold, up from 6 million in the first quarter.
Verizon Wireless (NYSE:VZ): Motorola (NASDAQ:GOOG) is set to become the sole manufacturer of Droid phones for Verizon, bumping out other Droid units from HTC and Samsung (SSNLF.PK). Motorola has proven to be a worthy partner for Verizon, and arguably the most important. The partnership locks up a prime flagship slot for Motorola, which is badly in need of hit smartphones to turn itself around, CNET says, adding that exclusives are seen as valuable because they guarantee a certain amount of marketing heft by the carrier.
Sprint (NYSE:S): Sprint has finalized its deal to have the nation’s third-largest carrier join Transit Wireless’s underground network in the New York subway system, allowing the company’s subscribers to have cell service within the vast subterranean public transport network. Transit Wireless is building a $200 million wiring project in the city’s subway system, with the company taking on the whole cost to build the network but then signing contracts with cellular carriers who want space on its antennas, MarketWatch reports.