AT&T Inc (NYSE:T) has plans to spend $14 billion on its wireless and wired network Project Velocity IP plan over the next three years. The decision will increase the company’s debt load as more and more smart phones and tablets are switching to 4G networks for higher data rates.
The plan includes expanding of its 4G LTE network to 300 million people in U.S by the end of 2014. Currently, it is targeting to provide 4G network to 250 million people by December, 2013.
AT&T expects that by year 2016 wireless and wire line data will make up 90% of total revenue which presently stands at 80%.
In the third quarter the AT&T showed a positive improvement in its wireless revenue profit .The company also raised its quarterly dividend by 2.3% to 45 cents. The increase in dividend would cost the company an additional $56.8 million a quarter.