Boston, MA 01/08/2013 (wallstreetpr) – AT&T Inc. (NYSE:T) is the leading telecom carrier in the U.S. The company is carrying on with its network upgradation and expansion, a promising venture on which huge money was spent. The company is now courting automakers to offer Internet in their cars.
Connected cars is becoming a lucrative business for tech companies, given the predictions that the industry’s worth will be more than tripled in the next few years. AT&T Inc. (NYSE:T) is trying to carve a niche in this market and the company is reported to have won over Audi and Tesla Motors Inc (NASDAQ:TSLA).
The company hopes to provide these automakers and many others that come its way in future with high-speed Internet connection in form of in-car Wi-Fi. This way passengers in a connected car can stream music, video and access numerous online radio services.
The amount of emphasis that AT&T Inc. (NYSE:T) is putting in connected car means that it could push the dream to acquire UK’s leading carrier Vodafone to the backseat. Last year AT&T Inc. (NYSE:T) talked of ambitions to invest in Europe and its best bet was Vodafone which already had a powerful platform and network in the region.
However, investors questioned investment in Europe given that the region is known for stringent telecom regulatory measures and high fines for offenders. It seems that focus on connected cars would be a reprieve for the concerned investors.
Challenge
Although the business of connecting cars is promising, it may run into trouble with the government policies, which require least distraction to drivers. Many states have banned texting while driving, while others have issues with the use of handheld devices while on the road. It thus means that AT&T Inc. (NYSE:T) should approach this market cautiously to avoid burning its fingers.
The stock
The stock of AT&T Inc. (NYSE:T) is under pressure, as competition emerge from every angle. The company has to deal with the competitors who are waging price wars and a slow economy, where customer spending has been weakened. Nonetheless, the infrastructural investment that the company has made by upgrading and expanding its networks are expected to boost revenue.
