AT&T, the largest communications holding company in the world by revenue, recently announced its newest investment venture, Project Velocity IP also known as “Project VIP”. Under Project VIP, AT&T will invest $14 billion dollars over the next three years to expand and enhance its wireless and wireline IP broadband networks. This expansion will help support customer demand for high-speed Internet access, new mobile applications, and cloud services. “This is a major commitment to invest in 21st Century communications infrastructure for the United States and bring high-speed Internet connectivity-4G LTE mobile and wireline IP broadband-to millions more Americans,” said Randall Stephenson, Chairman and Chief Executive Officer of AT&T. “Project VIP expands our potential in key platforms and makes them available to many more customers,” said Stephensen.
AT&T’s Project VIP consists of four individual wireless and wireline initiatives. The first initiative is the investment in mobile internet growth. AT&T plans to expand its 4G LTE network to cover 300 million people and 99% of all customer locations in the United States by the end of 2014. In addition, the company will purchase additional wireless spectrum to support its 4G LTE network and continue to advocate with the Federal Communications Commission (FCC) for the release of additional spectrum.
The second initiative of Project VIP is the investment in wireline IP network growth. Under this initiative, AT&T plans to expand and enhance its wireline IP network to 57 customer locations by the end of 2015. The company also plans to expand U-verse to more than 8.5 million additional customer locations, offer U-verse IPDSLAM service (high-speed IP Internet access and VoIP) to 24 million customer locations by the end of 2013, upgrade U-verse speeds up to 75Mbps, and expand its fiber network to reach an additional one million business customer locations.
The third initiative of Project VIP includes providing the platform for growth in mobility. By launching AT&T Digital Life, a nationwide all IP-based home security and automatic service, consumers will be able to manage their home’s security system from any device-smartphone, tablet, or PC. AT&T is also in talks with leading car manufacturers such as Ford, Nissan, and BMW to expand vehicle diagnostics and real time traffic updates to retail wireless subscriber data plans.
Lastly, with a stable economy, Project VIP will improve the company’s capital structure with the growth of earnings per share, consolidation of revenues, and expansion of consolidated margins. With Project VIP, AT&T will not only pave the way for internet transformation, but continue to lead our country as one of the most honored companies in the technology arena.