AT&T (T) is teaming up with OneWeb to enhance network connectivity in some of the “Hard-to-Serve Areas” across the U.S. The strategic partnership will allow the wireless giant to use satellite technology to enhance access for AT&T business customers.
AT&T is a telecommunication company that offers wireless voice and data communication services. It also sells broadband, including fiber and handsets.
The new connectivity enhanced by satellite technology should allow AT&T to reach areas that existing broadband networks cannot reach. Additionally, the new technology should enable the company to connect businesses. The company will also target government customers and cell towers.
AT&T will initially target customers in the Northern U.S., Alaska, and places where connectivity has previously been a challenge. (See AT&T stock charts on TipRanks)
“We’re expanding our network with one more option to help ensure that our business customers have the high-speed, low-latency connectivity they need to thrive as the nation recovers from COVID-19,” said President of Network Engineering and Operations, AT&T, Scott Mair.
According to the company, OneWeb’s network of satellites will support the new connectivity. Markedly, it has launched 288 satellites, with plans for a fleet of 648 satellites by 2022.
Yesterday, LightShed Partners analyst Walter Piecyk initiated coverage of AT&T with a Buy rating and a price target of $36, implying 30.43% upside potential to current levels.
According to Piecyk, the market is yet to comprehend the company’s wireless and fiber growth opportunity. Additionally, the analyst expects share repurchases to come into play soon.
Consensus among analysts is a Hold based on 5 Buys, 5 Holds, and 2 Sells. The average AT&T price target of $31.50 implies 14.13% upside potential to current levels.