This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AT&T Looks to Europe for Opportunities

NEW YORK (TheStreet) -- AT&T (T) is looking across the Atlantic Ocean at the vast European market despite the challenges all phone companies face in the region.

Despite the European Union, doing business in this region is still complicated and much more regulated for phone companies, with markets that have fragmented pricing and governments where it is a real challenge to create a regional network.

Still, the idea of moving over to Europe makes sense since AT&T has the experience of creating a fourth-generation (4G) U.S. network. It makes sense to apply it to Europe. Faster service would naturally lead to mobile customers increasing data usage. I believe the thinking is sound.

To expand into Europe, one strategy under consideration is buying a European phone company. Vodafone (VOD), in the news for quite some time since selling its stake in Verizon Wireless, is a strong candidate.

AT&T has battled "big brother" Verizon Communications (VZ) to keep its dominance in the sales of iPhones, to no avail. Verizon is picking up ground and increasing its iPhone sales, creating a nice dominance in the mobile advertising market. In the spring of 2013 the iPhone boasted 64% of the mobile advertising market share.

In terms of subscribers, Verizon is the largest mobile phone carrier in the United States with a slight edge over AT&T. With the U.S. market becoming more and more saturated, building a 4G network in Europe almost looks like virgin revenue territory.

Still, there are risks. Within the last decade there have been global-minded Internet companies that have attempted to expand their networks internationally by counting on rising Internet usage to pay for it. Do you remember Worldcom? It had a global network that included the United States, Europe and parts of Latin America but ended up filing for bankruptcy.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs