AT&T to Spend $14 Billion to Upgrade Wireless Networks

U.S. carrier AT&T has announced an ambitious plan to upgrade its wireless networks through investment totaling $14 billion.

Project Velocity IP, otherwise known as VIP, will receive an investment of $14 billion over the next three years. $8 billion will be focused towards its wireless division and a further $6 billion for wireline.

The investment is designed to expand the company's 4G LTE coverage for its wireless network, as well as delivering a faster service and more fiber-optic lines. On the landline side of its investment, it'll receive expanded U-Verse availability.

"This directly addresses the strategic questions concerning our spectrum position and gives us a bigger platform for new growth," AT&T CEO Randall Stephenson said. "The last five years have been an adrenalin rush, and in the next five years the cloud technology will drive even more change. The past five years changed communication industry, but over next five years every industry will change and there will be demand for high-speed secure networks."

The carrier also announced that it will be extending its 4G LTE coverage to 300 million consumers by the end of 2014, which is 50 million more customers than previously planned. AT&T expects to cover 99 percent of all customer locations through the deliverance of 4G LTE.

Project VIP's upgrade plan will result in considerably higher speeds for customers. The firm will eventually be able to offer 90 percent of its U-Verse region 75 megabits per second, while 75 percent will receive speeds of 100 megabits per second.

When the investments are completed, AT&T said 90 percent of its overall revenue will derive from its high-growth area, with the carrier aiming to discontinue traditional phones and landline connections.

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