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AT&T Enters Into Agreement With Amdocs for Digital Upgrade

Zacks Equity Research

AT&T Inc. T has inked an agreement with Amdocs Limited DOX to upgrade and modernize its digital business support system. The multi-year managed services agreement is part of the business transformation strategy of AT&T and is primarily aimed at bringing innovation to the market in an agile manner.

The deal has reinforced the long-standing business relationship between the two firms. Per the agreement, the companies are collaborating to augment data analytics and security programs while focusing on improved customer experience and digital enablement setup. In addition, the partnership aims to accelerate the implementation of DevOps to effectively address business priorities and evolving market conditions.

The alliance is based on the perceived demand escalation of new business and consumer applications with the wide proliferation of 5G, cloud and edge computing services. Edge computing forms a core focus area for AT&T and marks a positive stride forward in providing faster processing and potentially enhanced security for business applications. Together, the companies aim to offer a flexible tool to better analyze data and process low-latency, high-bandwidth applications. The go-to-market alliance particularly intends to enable customers to swiftly convert data into actionable intelligence, enabling unique digital experiences and smarter operations.

Notably, another leading U.S. wireless service provider – United States Cellular Corporation USM – has also extended its long-term alliance with Amdocs by deploying its digital care solutions across its own network. This is likely to enable U.S. Cellular to digitize online and mobile application-based sales and ordering campaigns, thereby boosting consumer experience with greater automation. In addition, it would also facilitate better management of digital marketing efforts with more data- and analytics-driven reports. This, in turn, is expected to enable U.S. Cellular to promptly add solutions and capabilities in short iterative cycles to deliver highly agile digital-first experience to its users.

Both AT&T and Amdocs carry a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Verizon Communications Inc. VZ, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Verizon has long-term earnings growth expectation of 4.2%. It delivered an average positive earnings surprise of 2.2% in the trailing four quarters, beating estimates on each occasion.

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Amdocs Limited (DOX) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
United States Cellular Corporation (USM) : Free Stock Analysis Report
 
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