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AT&T Expands 5G RedCap Coverage: Will it Drive Sustainable Growth?

AT&T Expands 5G RedCap Coverage: Will it Drive Sustainable Growth?

Yahoo18-07-2025
AT&T, Inc. T is steadily expanding its 5G Reduced Capability (RedCap) network coverage nationwide. This network is a lightweight version of 5G. It is designed for devices which need lower bandwidth, low power consumption and lower costs but still offer low latency and reliable internet service. Such features make the technology ideal for large-scale IoT deployments. It is getting popular in multiple domains such as consumer devices like smartwatches, XR devices, industrial IoT devices like sensors, smart meters, healthcare, fleet and asset tracking devices. Per Market Research Intellect, 5G RedCap technology market is projected to grow at a 25% compound annual growth rate between the period of 2024 and 2033.The technology is emerging as a game-changing connectivity layer for mid-tier devices. AT&T has been steadily advancing its 5G RedCap ecosystem to capitalize on this emerging market trend. The company recently announced that its 5G RedCap, built on a 5G Standalone network, now covers 200 million people across the country. Such comprehensive nationwide coverage is a major milestone, making AT&T's 5G network an essential enabler of the next generation of AI-powered IoT innovation and deployment in the United States. Franklin Wireless RG350, a mobile hotspot powered by Qualcomm Snapdragon X35 5G Modem-RF System, is the first commercially approved RedCap product to be used on AT&T's network. The company is collaborating with Samtech, Telit Cinterion and Rhino Mobility to check and certify their module as RedCap compatible and foster advancement in the IoT device ecosystem.
How Are Competitors Faring?
AT&T faces competition from T-Mobile US, Inc. TMUS and Verizon Communications, Inc. VZ in this market. T-Mobile is also advancing RedCap technology infrastructure nationwide in 2025. The company emphasizes that its technology efficiently reduces power consumption without compromising service quality. T-Mobile's effort to extend its 5G beyond legacy mobile services can pose a challenge to AT&T.Verizon is witnessing healthy 5G traction. Its 5G mobility service offers an unmatched experience that impacts industries as diverse as public safety, health care, retail and sports. The company has collaborated with Ericsson and MediaTek to conduct trials for RedCap technology. However, Verizon is playing a catch-up game with its U.S. competitors, T-Mobile and AT&T, in RedCap commercialization.
T's Price Performance, Valuation and Estimates
AT&T has gained 41% over the past year compared with the Wireless National industry's growth of 18.4%.
Image Source: Zacks Investment Research
Going by the price/book ratio, the company's shares currently trade at 12.58 forward earnings, lower than 12.96 of the industry but above its mean of 10.96.
Image Source: Zacks Investment Research
Earnings estimates for 2025 and 2026 have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AT&T currently carries a Zacks Rank #3 (Hold). You can see tthe complete list of today's Zacks #1 Rank (Strong Buy) stocks here..
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AT&T Inc. (T) : Free Stock Analysis Report
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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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