AT&T and Sprint are making moves to build out and bolster their networks to better compete with the likes of Verizon.
In a statement, AT&T said that it will spend $14 billion to improve its wireless and wireline broadband networks. According to AT&T, it will cover about 300 million people with its 4G LTE network by year end 2014.
Meanwhile, AT&T plans to deploy fiber optic lines to reach more than 1 million new business customers by the end of 2015. The bet for AT&T revolves around advanced enterprise data services.
Of the $14 billion AT&T will spend over the next three years, $8 billion will be for wireless and $6 billion for wireline. Total capital spending will be $22 billion for each of the next three years.
The AT&T investment plan is dubbed Project Velocity IP (VIP), an effort to derive most of the company's revenue from high growth areas. The news comes afterfor AT&T.
As for earnings, AT&T said it expects earnings to grow in the mid-single digit or better range. Revenue growth will mirror gross domestic product plus 100 basis points. In other words, AT&T expects growth to be a bit better than the economy.
For Sprint's part, the company said it will acquire PCS spectrum from U.S. Cellular in a deal valued at $480 million. The spectrum will allow Sprint to bolster coverage in the Midwest of the U.S. as it deploys its 4G LTE network.
Sprint recently landedso it can build out its network to better compete.