By Quad 7 Capital Research
We have learned that Ohio has joined Vermont to become the two latest states to join AT&T's First Responder Network Authority (FirstNet) initiative. The FirstNet initiative occasionally makes a news item, but AT&T investors are largely ignoring this project - and it is a critical mistake, from our viewpoint. In this article, we discuss which states have opted in, as well as those that may be opting out. We provide insight into and the implications for AT&T longer term for being selected over the competition for this unprecedented network. Further, we discuss why Verizon (NYSE:VZ) is making every effort to pick up business in the public safety space. We believe FirstNet is a vastly underappreciated and under-covered reason to stay in AT&T long term.
What is FirstNet?
With all of the glitz and glamour associated with AT&T's volatile trading lately, investors have no doubt focused on the race to 5G technology, competitive pressures facing consumer wireless revenues, and the drama associated with the Time Warner merger, which may or may not even help AT&T. However, every few days we see that another state has opted into the so-called "FirstNet." So, what is it?