AT&T Inc. (T): The Bulls’ Case

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Investors should pay close attention to the 4G LTE market as demand for its services continues to grow at a fast rate. AT&T, Verizon, and Sprint all provide 4G LTE services along with other business solutions.

AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have strengths that Sprint Nextel Corporation (NYSE:S) lacks. AT&T has $7.07 billion in free cash flow – Verizon, $3.51 billion in free cash flow. Free cash enables businesses and organization to invest heavily toward expanding operations and having a low debt profile. This, along with a solid foundation for future growth, means that Sprint Nextel Corporation (NYSE:S) ($319.12 million in free cash flow) will find it difficult to compete with the two.

But investors should not underestimate Sprint Nextel Corporation (NYSE:S)’s ability, as it has the manpower and technology to rival AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ). Sprint recently rolled out 4G LTE networks in 21 more markets. Verizon also expanded the 4G LTE network to cities such as Cayuga County, Chautauqua County, and others.

Summary

Relying on embedding LTE technology in mobile and other consumer devices, Verizon Communications Inc. (NYSE:VZ), in similar fashion to AT&T, has increased its 4G LTE revenues without having to restructure the company. Combined with smart business strategy, Sprint Nextel Corporation (NYSE:S) will remain a threat as it closes in on AT&T Inc. (NYSE:T) and Verizon.

The article A Bullish Case for AT&T originally appeared on Fool.com.

Adetokunbo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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