AT&T to Launch 4G LTE Service This Summer
By ROGER CHENG
AT&T Inc. said it plans to launch its super-fast wireless network in five cities this summer as it looks to catch up to Sprint Nextel Corp. and Verizon Wireless.
The company earlier this year said it would speed up its deployment of the network, underscoring the importance of keeping pace in the wireless speed game. With the wireless industry increasingly touting a faster "4G" connection, carriers are under the gun to build out increasingly sophisticated networks.
AT&T, and rival T-Mobile USA, have inadvertently caused some confusion about 4G services. Earlier this year, AT&T began calling its upgraded 3G network 4G, although the service failed to meet expectations due to the slow expansion of its enhanced ground infrastructure. The company is investing in a next-generation technology called Long-Term Evolution for its summer rollout, the same technology used by Verizon Wireless.
John Stankey, head of AT&T's business-solutions unit, disclosed plans to launch the network in Atlanta, Chicago, Dallas, Houston and San Antonio at an investor conference on Wednesday. He added he expects to rollout 4G LTE to 10 additional markets by the end of the year.
The rollout is more modest than the effort made by Verizon, which launched its LTE network in 38 markets and 60 commercial airports. AT&T has said that its faster 3G service would allow for a more-gradual transition to 4G.
Verizon Wireless, jointly owned by Verizon Communications Inc. and Vodafone Group PLC, recently announced its own expansion of 21 markets, and expects to cover 76 by June 16. Sprint and partner Clearwire Corp. offer 4G services using a different technology in 77 markets. The companies are also looking at moving to LTE as well.
Mr. Stankey, meanwhile, said AT&T should see growing revenue from its business-services arm as the telecommunications giant exits the year.
AT&T's business unit has lagged behind some of its other faster-growing units such as its wireless or home U-Verse Internet and TV businesses as the economy has struggled with continued high unemployment and a slow recovery.
Spending from local governments continues to be challenged, Mr. Stankey said. "I don't know if that's the most robust place," he said.
On cloud services, Mr. Stankey said he would prefer to work with partners and grow AT&T's business organically. He said he didn't see any assets that would fit with the company in this area. Rival Verizon Communications recently bought data-center and hosting-service provider Terremark to augment its cloud offering.
Mr. Stankey added he was excited about the deal to buy T-Mobile USA, noting that he expects the transition of phones and networks to occur over two years, or roughly the lifespan of an average cellphone.
