Can AT&T’s New High-Speed Internet Help it Catch Up With Comcast?
AT&T (NYSE:T) announced today that it’s launching a faster version of its U-Verse internet in 40 markets across the U.S., a move to help it catch up with the cable companies that have been offering faster Internet speeds for some time. Customers in the eligible markets will now be able to get Internet through U-Verse at speeds of 45 Mbps downstream and 6 Mbps upstream.
The move is a part of the company’s Project Velocity, a three-year endeavor to up Internet speeds and expand IP broadband networks. Eventually, the goal of the project is for the company to be able to offer its customers Internet at up to 100 Mbps. According to research from Leichtman Research Group seen by Gigoam, AT&T lost 61,000 broadband subscribers last quarter, putting it in second place behind Comcast (NASDAQ:CMCSA) as the biggest broadband provider in the country.
Time Warner Cable (NYSE:TWC), Verizon Communications (NYSE:VZ), and CenturyLink Inc. (NYSE:CTL) rounded out the top five broadband providers in the U.S., according to Leichtman. Verizon is still behind AT&T even after AT&T’s customer losses, but Verizon showed a gain of 45,000 customers for the quarter. So, AT&T needs to make some changes if it expects to stay ahead of its biggest competitor.