AT&T $14 Billion VIP Project Expands LTE, Business Services
AT&T, at a Nov. 7 analyst event in New York City, announced plans to invest $14 billion over the next three years to strengthen its key revenue drivers. Called Project Velocity IP (VIP), AT&T's new plan looks to extend 4G Long Term Evolution (LTE) technology to 300 million people by the end of 2014; deliver high speed IP broadband to 75 percent of AT&T's wireline customer locations; light up fiber to 1 million more business locations; transition to wired and wireless IP; and finally to further optimize AT&T's capital structure. While wireless, wireline data and managed IT service now account for 81 percent of AT&T's revenue, following the investment, AT&T expects that figure to reach 90 percent. "This is a major commitment to invest in 21st century communications infrastructure for the United States and bring high-speed Internet connectivity ... to millions more Americans," AT&T CEO Randall Stephenson said in a statement. The plan will help AT&T drive revenue growth through both existing products and services and forthcoming ones, such as connected cars and an IP-based home security solution. How will this new investment impact your business or IT department? eWEEK takes an in-depth look.
AT&T CEO Randall Stephenson opened the event by acknowledging Hurricane Sandy, which paralyzed much of the New York region the week before. "We compete and go hard at each other every single day," he said of the wireless industry, "but in a moment of crisis, I'm really pleased how we all worked together toward one end, and that was to get our communities communicating and do it quickly. ... We put the public first." After the storm, AT&T and T-Mobile allowed customers to roam across both networks, helping supplement each other's damaged networks.