AT&T Inc (NYSE:T) puts brakes on buybacks, accelerates on internet speeds

by Paul Wilson | Saturday, Mar 30, 2013 | 472 views

Boston, MA, 03/30/2013 – The largest phone company in the U.S AT&T Inc (NYSE:T) (Current: $36.69, Up by 0.19%) is slowing down on share buy-backs and channelising its efforts and funds towards hiking up its internet speeds and has increased the pace of fiber-optic line installation. In addition to this, it is diverting funds to wards extension of its Long Term Evolution mobile network. Its capital expenditure is slated to rise to a Record of $21 billion in 2013 which will be a whopping $19.5 billion higher than what they stood at in 2012. Though the spotlight is currently on speeding up their network the company has not corked down completely on share buybacks. It had been permitted to buy 300 million shares in December 2010.

Market switching gears

Over and above that AT&T Inc (NYSE:T) has a recent approval from the board to buy 300 million new shares and has already exerted its right  acquiring 239 million out of that number. The company said that all future buy-back decisions will be based on opportunities that present themselves in the future and they will now be slowing down on that front. The internet and mobile communications market in the U.S has seen a lot of turbulence and shakeup’s, thanks largely to the flood of smartphones and various mobile devices by all the big and small players in the market. There are high end phones and those that cater to the mid-and lower range market as well.

Most come with inbuilt features that are very similar, screens that are getting larger and technology that is more advanced. The only way that mobile carriers can be one-up on the marketing game and keep their users and gain profits is by ensuring uninterrupted and high-speed services to their customers.

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