AT&T Inc.
T
has announced collaboration with
Microsoft
MSFT
under which the telecom giant will move its 5G mobile network to the latter’s cloud. This will allow AT&T’s mobile network traffic to be managed by Microsoft Azure technology.
The process will start with AT&T’s 5G core, which is the 5G network’s main software that connects mobile users with the Internet. The move will enable AT&T to enhance productivity and deliver large-scale network services to meet customers’ needs.
Microsoft will have access to AT&T’s intellectual property to expand its telecom offering — Azure for Operators. It is acquiring AT&T’s carrier-grade Network Cloud platform, which has been running AT&T’s 5G core since the company launched 5G in 2018.
AT&T will continue to operate its network and maintain its customer relationships. By using Microsoft’s hybrid infrastructure, AT&T will be able to significantly decrease engineering and development costs. With Microsoft’s cloud, AI and edge technology, it can innovate faster and roll out new services that are enabled by 5G.
AT&T aims to streamline its operations with the growing demand for reliable mobile services at competitive prices. It has been working to unlock 5G opportunities for customers from different industries.
Furthermore, Microsoft will acquire AT&T’s engineering and lifecycle management software, which are used to deploy a carrier-grade cloud that runs virtualized network services. Microsoft will bring AT&T’s existing network cloud to Azure over the next three years. The details on the financial terms were not disclosed.
AT&T is likely to benefit from the increasing demand for its wireless services. The company continues to invest in key areas for long-term sustainable growth.
AT&T’s shares have lost 4.3% in the past year against 6.1% growth of the
industry
.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the industry are
United States Cellular
Corporation
USM
and
Cambium Networks Corporation
CMBM
, both sporting a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
U.S. Cellular delivered a trailing four-quarter earnings surprise of 123.9%, on average.
Cambium delivered a trailing four-quarter earnings surprise of 46.5%, on average.
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