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November 8, 2012

AT&T spending $14B to expand wireless, broadband

NEW YORK (AP) — Many homes in AT&T's local-phone service areas will see the company becoming more competitive with cable for broadband service under a new $14 billion investment plan the company revealed Wednesday. But in more outlying areas, the company will start shifting customers from regular phone lines to wireless service.

Like other phone companies, AT&T is having a hard time competing with cable broadband in much of its service area, because regular DSL broadband is now much slower than what cable companies offer. After reviewing its options, AT&T concluded that it won't sell off phone lines in outlying areas like Verizon Communications did. Instead, it will pursue a split strategy of upgrading some areas to higher speeds and abandoning phone lines in less dense areas in favor of wireless.


 
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