AT&T announced launch of its roaming services in Cuba to expand its market share in the region
While expanding its network operations, AT&T Inc. (NYSE:T) launched its roaming services in Cuba through which customers can text, talk, and use internet while remaining on the network and traveling to Cuba. With the launch of current services, the telecom giant remains bullish and stated to continue to expand its international network and global coverage.
Review of the news release reveals that the customers will be charged $3 per minute for voice calls. Internet will be charged $2.05 per one MB while SMS/MMS will be charged $0.50/$1.3 respectively. This is not the first time that the company expanded its international network coverage; it has been previously looking into options to come to competition overseas.
Not only internationally, the telecom company also plans to expand its local operations as it is expected to spend millions to renovate its headquarter located in Dallas, which would create jobs for 1,300 more employees. Through this expansion in its operations, the company aims to remain the market leader by generating growth in its operating revenues.
The company is slated to report its third quarter fiscal year 2016 earnings release this week as well for which investors are concerned because it impacts its stock performance. Through its hard efforts and keeping its market share, AT&T has been able to generate growth in its stock price that soared 16.35% over past 12 months.
The stock slumped 8.14% during past three months, but industry analysts remain confident that the company will recover from the current slump by reporting a beat on its revenue and earnings per share estimates for third quarter 2016. Furthermore, the current expansion of roaming services in Cuba will also allow AT&T to boost its fourth quarter fiscal year 2016 earnings, as the current services would add to the company revenues.
AT&T Global Connection Management executive vice president Bill Hague remains confident with the launch of the roaming services to Cuba. He believed that the new services further solidifies position as having best coverage of any US wireless service provider in the region.