Much of the $14 billion AT&T is investing in its networks will go toward making its business division even more profitable.
The initiative, dubbed Project Velocity IP, or Project VIP, will beef up AT&T’s wireline and wireless IP broadband networks in the United States. On the business side, AT&T is aiming for big growth in network services, cloud, security and mobility. The operator expects strategic services alone to achieve $1 billion growth per year by 2015.
Business services already comprise a hefty amount of AT&T’s overall revenue; in just the third quarter, they contributed $9.1 billion in sales.
But AT&T wants more and, with the help of Project VIP, plans to get it. As a result, AT&T said it will light fiber to 1 million more businesses by 2015, and expand 4G LTE to 300 million points-of-presence. Those expansions will help the company offer more products including cloud, VPN, Ethernet, broadband and mobile security.
The idea, AT&T noted in an investor presentation, is to create "multiple new billion-dollar business opportunities."