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AT&T Aio Wireless Separation May Be Just The Start

AT&T Aio Wireless: AT&T Inc. (NYSE:T) has begun a strong economic struggle with its rivals after several days of low performance in the sector and is looking for new markets for growth abroad.  In order to improve its revenues the company has decided to begin a new business strategy selling and buying certain activities related to its sector, AT&T decided to separate its phone service, Aio Wireless, from the main core of the company to convert the brand into an independent provider of cell phone services across the United States. At the same time, it will try to capture clients with non-contract solutions under competitive rates ranging from 40 to 70 dollars per month.

AT&T Inc. (NYSE:T)

On the other hand, CEO Randall Stephenson announced last Friday that the company will sell its wireless tower assets for $5 billion approximately, to one of the following potentials acquirers: American Tower Corp (NYSE:AMT), Crown Castle International Corp (NYSE:CCI), and SBA Communications Corp (NYSE:SBAC). The revenues could be useful to inject capital to the company to acquire new projects in the US or abroad. Today, Stephenson said that AT&T will start to operate LTE Broadcast technology, which allows using cellular towers to transmit video without interfering with other kind of data. That technology was acquired from QUALCOMM, Inc. (NASDAQ:QCOM) two years ago and allows AT&T to move a step ahead of the competition.

AT&T has announced in recent weeks its interest to penetrate the communications business abroad. In Latin America, AT&T has signed a partnership with America Movil SAB de CV (ADR) (NYSE:AMX) that gives to the company several advantages in the region to expand its business beyond Mexico and Brazil, two countries where the company has been operating. The firm is interested in moving into the Colombian, Argentinean, and Panamanian markets.

Likewise, the company has shown interest to acquire companies in Europe, according to AT&T’s CEO, Mr. Stephenson: “If there were opportunities that presented a good value, of course we would do it.” Therefore, the company has been negotiating with the Spanish based Telefónica SA (NYSE:TEF), and Telecom Italia (NYSE:TI), two companies that have been hit by the European economic crisis.  Although this new strategy in Europe could be profitable, the company will have to change and standardize its communication spectrum to European technical norms. These activities could take a long time, too much for a European license period, which differs from US standards and has a limited time ranging from 10 to 12 years. Check back here for updates on AT&T, Aio Wireless and more.

Disclosure: Saul Rodriguez holds no position in any of the mentioned stocks.

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