AT&T announced plans to invest $14 billion over the next three years in order to expand and enhance its wireless and wireline broadband networks. The investment plan, called Project Velocity IP (VIP), includes an expansion of AT&T's 4G LTE network, the acquiring of additional spectrum, and the deployment of small cell technology, macro cells and additional distributed antenna systems.
By the end of 2014, AT&T plans to expand its 4G LTE network to cover 300 million people. This represents an increase from the company's original plan to offer 4G LTE to about 250 million people by the end of 2013. AT&T plans to offer 4G LTE service to 99 percent of all its customer locations in its 22-state wireline service area.
AT&T also plans to buy additional wireless spectrum to support its 4G LTE network. The purchase of spectrum will be in addition to the more than 40 spectrum deals this year. With all of the purchases, AT&T expects to have about 118 MHz of spectrum nationwide.
AT&T will also expand its wireline IP network to 57 million customer locations which represents 75 percent of all customer locations in its wireline service area by the end of 2015. This expansion will include U-verse, speed upgrades, and an expansion of its fiber network.
U-verse will be expanded by more than one-third locations and will also receive an upgrade in speed. The U-verse IPDSLAM service which offers high-speed IP Internet access and VoIP will be expanded to 24 million customer locations in its wireline service area by year-end 2013. By expanding its fiber network, AT&T intends to reach an additional one million business customer locations.
By expanding its 4G LTE network, AT&T is hoping to spur growth in its Digital Life, Mobile Premise Solutions, Mobile Wallet, and Connected Car services.
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