This week AT&T (NYSE:T) announced that it will be working with Apple (NASDAQ:AAPL) to update the network indicator to read ’4G’ when connected to its HSPA+ network. It is trying to brand its upgraded HSPA+ networks as 4G in what has been a grey area as Verizon (NYSE:VZ) continues to expand its 4G LTE network in the U.S. and Sprint (NYSE:S) finalizes plans to raise additional capital for its LTE launch next year.
Last week in our note titled AT&T Could Gain the Most from the iPhone 4S Announcement, we discussed some of the positive factors that could support AT&T’s subscriber base growth. The iPhone 4S will support twice the download speed exclusively on AT&T’s network and Apple announced that the iPhone 3GS will be sold for free with a two-year contract for which AT&T is again the exclusive seller in the U.S. With 4G label on iPhone 4S, AT&T is trying to market the fast network speeds and thereby attract more subscribers.
In another news this week, the FCC has asked AT&T to clarify how the proposed merger with T-Mobile USA will add jobs in the United States. [1]
A few weeks back, AT&T’s planned purchase of T-Mobile was smacked with a nasty setback yesterday when the U.S. government filed an antitrust lawsuit to block the proposed deal. AT&T argued that the T-Mobile deal will not be anti-competitive and by expanding its 4G LTE network and merging the two companies’ wireless networks, the company would work towards creating jobs and generate economic growth (see Government Delivers Blow to AT&T and T-Mobile Deal).
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- FCC: AT&T failed to address how proposed T-Mobile merger will add jobs, BGR, October 13th, 2011 [↩]
