Stock Blog Compares AT&T, Verizon

This morning, over at Seeking Alpha, there's a nice article from ValueExpectations (a stock blog and investment newsletter that provides institutional quality equity research) on the difference between AT&T and Verizon. ValueExpectations.com is run by the founders of The Applied Finance Group and Toreador Research and Trading.

 

To start, the article separates AT&T and Verizon from the third place U.S. wireless provider, Sprint.

 

Then, it compares the relative value proposition of both top wireless operators.

 

AT&T's market cap is $150 billion to Verizon's $90 billion.

 

AT&T is considered to have the better 3G network and a partnership with Apple to offer what is considered the hottest smartphone on the market, the iPhone. Verizon however has a "decent" 3G network, according to the article, and through its partnership with and support for several Blackberry models, is riding a positive trend.

 

Verizon's FiOS is considered the wave of the future, delivering "lightning-fast fiber optics" while AT&T's FTTN (fiber to the node) strategy is somewhat wanting. FiOS is also enjoying a much higher rate of adoption than AT&T's U-Verse product.

 

Finally the article compares the two operators' plans for fourth-generation wireless, or 4G. Verizon seems to be better positioned here, with a more aggressive rollout schedule, looking to deploy 4G services by 2010 as opposed to AT&T looking to roll out service two years later.

 

Finally, using a proprietary valuation model, the article by Value Expectations views Verizon as an attractive play, while AT&T looks overpriced.

 

To learn more about 4G and to stay up-to-date on the latest news and trends in the space, visit the 4G-Wireless Evolution homepage.