AT&T to Unveil Upgrade Plan to Improve Outlook of Rural Business

AT&T plans to tell investors November 7 that it will extend high-speed Internet service to far-flung customers in an effort to boost sales in its struggling rural business.

Through a combination of upgrades to the phone lines and the expansion of its long-term evolution, or LTE, wireless network, the company would be able to reach customers in rural areas with faster connections. About 23 percent of AT&T’s 52 million subscriber households can’t get broadband lines, according to John Hodulik, an analyst at UBS AG. As rural consumers switch to mobile phones for voice calls, they’re getting rid of home lines, causing AT&T to lose customers who might otherwise stick around for broadband speeds. Instead of attempting to get rid of what it has called an “underperforming asset,” the company is seeking to revitalize rural lines. The idea is to get the operation’s sales growth closer to the 6 percent rate at the rest of the company.