This Day On The Street
Continue to site
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

AT&T Looks to Europe for Opportunities

NEW YORK ( TheStreet) -- AT&T (T - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
T $38.82 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs