Nomura Securities on Day One of the Telecom Summit: Meetings with Management of VZ & T
Tweet
Share
E-mailGet Alerts T Hot Sheet
Price: $25.29 +0.56%
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Join SI Premium – FREE
Nomura Securities on Day One of the Telecom Summit.
Anayst, Mike McCormack, on AT&T (NYSE: T), "Wireless intensity described, margins improving: The wireless landscape was portrayed as ‘intensely competitive’. However, look for the combination of tiered pricing, new upgrade fees and longer upgrade policies to accrete margins. Specifically, margins should improve sequentially in 2Q12, and be north of 40% in 2012. Wireline margins: Should the economy improve, there is significant opportunity to improve margins. While reported margins have been flat, business segment margin have improved with efficiencies, and have been held back by a soft consumer."
"Balance sheet strength pays now, provides flexibility for tomorrow: Shareholder
returns have been and will be bolstered by the strong cash generation of the business. Going forward, AT&T (NYSE: T) appears intent on maintaining incremental debt flexibility should opportunities materialize."
On Verizon (NYSE: VZ): Network foundation in place to drive growth: The core of the Verizon strategy is to accentuate the four key elements of the network. Specifically, the LTE network, Global IP/MPLS transport network, the FiOS network, which will all be linked by the Cloud. Wireless spectrum: Once SpectrumCo is closed, Verizon will have sufficient network capacity for the foreseeable future. Given the time it takes to acquire spectrum, and then build it out, an operator cannot wait until current capacity is exhausted. Longer-term, while cell-splitting is an option, incremental spectrum provides superior consumer experiences. Without additional spectrum, pricing will be used to curb behavior."
Streaming and Over-The-Top Video: The pairing of QAM video delivery to the home with IP rebroadcasting inside the home, as well as enhancements to the GPON delivery, will allow for ample FiOS network capacity to support consumer video trends.
Anayst, Mike McCormack, on AT&T (NYSE: T), "Wireless intensity described, margins improving: The wireless landscape was portrayed as ‘intensely competitive’. However, look for the combination of tiered pricing, new upgrade fees and longer upgrade policies to accrete margins. Specifically, margins should improve sequentially in 2Q12, and be north of 40% in 2012. Wireline margins: Should the economy improve, there is significant opportunity to improve margins. While reported margins have been flat, business segment margin have improved with efficiencies, and have been held back by a soft consumer."
"Balance sheet strength pays now, provides flexibility for tomorrow: Shareholder
returns have been and will be bolstered by the strong cash generation of the business. Going forward, AT&T (NYSE: T) appears intent on maintaining incremental debt flexibility should opportunities materialize."
On Verizon (NYSE: VZ): Network foundation in place to drive growth: The core of the Verizon strategy is to accentuate the four key elements of the network. Specifically, the LTE network, Global IP/MPLS transport network, the FiOS network, which will all be linked by the Cloud. Wireless spectrum: Once SpectrumCo is closed, Verizon will have sufficient network capacity for the foreseeable future. Given the time it takes to acquire spectrum, and then build it out, an operator cannot wait until current capacity is exhausted. Longer-term, while cell-splitting is an option, incremental spectrum provides superior consumer experiences. Without additional spectrum, pricing will be used to curb behavior."
Streaming and Over-The-Top Video: The pairing of QAM video delivery to the home with IP rebroadcasting inside the home, as well as enhancements to the GPON delivery, will allow for ample FiOS network capacity to support consumer video trends.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bernstein remains bullish on SpaceX but sees challenges in telecom ambitions
- Deere (DE) PT Raised to $585 at JPMorgan
- Verizon prepares network for potential tropical storm; Customer relief through August 31
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
NomuraSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
