AT&T Inc. (T) is planning to upgrade it network to facilitate 4G services in the Las Vegas region. The wireless network enhancement plans represents a part of AT&T’s projected capital expenditure of $19 million in its wireless and wireline networks in 2011.

The investment program in Las Vegas includes deployment of backhaul connections to approximately 340 cell sites. The backhaul coupled with High Speed Packet Access+ (HSPA+) technology will support 4G speeds in the region.

AT&T will also install more than five new cell sites to enhance network coverage and add extra wireless capacity to around 180 cell sites through new layers of frequency, to create more lanes to accommodate increasing traffic.

Moreover, the company will deploy and upgrade Distributed Antenna System (DAS) networks in more than 10 high-traffic locations to provide enhanced wireless coverage to subscribers where geographical limitations can cause interruption in wireless exposure.

AT&T has already invested $140 million in Las Vegas and $500 million across Nevada in upgrading networking systems between 2008 and 2010.

Last year, the company upgraded its mobile broadband network in Las Vegas. The upgrade program installation of over 10 new cell sites, including North Las Vegas areas like Decatur and Washington, both East and West of the North Las Vegas airport, as well as near Beltway.

Further, the program comprised addition of spectrum carriers to more than 280 cell sites, deployment of enhanced backhaul connections to key cell sites to facilitate 4G speeds and enhancement of capacity and deployment of DAS networks at various locations. 

However, in recent times the company remains challenged by aggressive pricing plans of direct competitors such as Verizon Communications Inc. (VZ) and Sprint Nextel Corp. (S). Moreover, AT&T’s loss of iPhone exclusivity in February and hefty subsidies of approximately $300 per phone to Apple (AAPL) substantially limits the upside potential of the company.

Hence, we remain Neutral on AT&T over the long term. The short-term (1–3 months) rating on the stock is supported by a Zacks #4 (Sell) Rank.

 
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