AT&T (NYSE: T) said it plans to expand its U-verse TV, Internet and VoIP phone service to 33 million homes and increase the speeds of its Internet product to up to 75 Mbps.
The telco announced the U-verse expansion, which is part of a $14 billion investment that AT&T said it will make on its wireline and wireless networks, on Wednesday. AT&T says it currently passes about 24.5 million homes with U-verse. While Verizon (NYSE: VZ) has halted expansion of its FiOS TV and Internet platform, AT&T is banking that it will be able to recruit enough subscribers from Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and other pay TV and broadband providers to turn a profit on the U-verse expansion.
AT&T said it will be able to offer speeds of 75 Mbps, and increase the speed of its U-verse IPDSLAM service, an IP-based DSL product, to up to 45 Mbps, "with a path to deliver even higher speeds in the future."
With the U-verse TV expansion, AT&T will likely overtake Verizon in pay TV homes. AT&T ended the third quarter with 4.3 million U-verse TV subscribers, while Verizon finished Q3 with 4.3 million FiOS TV customers. AT&T picked up 198,000 U-verse TV and 613 U-verse high-speed Internet customers during the quarter.
- see the release
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