TAKING THE PULSE: AT&T Inc. (T) still expects to complete its $39 billion acquisition of T-Mobile USA from Deutsche Telekom AG (DTEGY, DTE.XE) by early next year, in spite of strong opposition from different quarters. While many wonder whether AT&T will be required to make certain concessions, such as divestitures, to get regulatory approvals, other wireless providers are taking steps to remain competitive. Some of their plans include adding new smartphone and tablet offerings, expanding into cloud-based services, and boosting network capacity.

 
    COMPANIES TO WATCH: 
 
    AT&T Inc. (T) - reports July 21

Wall Street Expectations: Analysts polled by Thomson Reuters recently expected a second-quarter profit of 59 cents a share on $31.3 billion in revenue, compared with 61 cents a share, before a 7-cent investment gain, on revenue of $30.8 billion a year earlier.

Key Issues: The telecommunications company appeared to have weathered the loss of being the exclusive U.S. carrier for the popular Apple Inc. (AAPL) iPhone last quarter, though the company spent heavily on smartphone subsidies. Like many of its peers, AT&T is targeting alternative devices such as tablets and e-readers for new sources of revenue. Another growth opportunity would be its T-Mobile acquisition, which will face heavy scrutiny over the next year. Earlier this month, Macquarie Equities downgraded AT&T to neutral from outperform, citing a slower-than-expected recovery in the company's wireline operation for business customers, challenges to wireless revenue growth and a lack of clarity on the status of the T-Mobile deal.

 
    Verizon Communications Inc. (VZ) - reports July 22

Wall Street Expectations: Analysts forecast a profit of 55 cents a share on revenue of $27.4 billion. A year earlier, the company reported a loss of 7 cents a share on revenue of $26.8 billion. Excluding items such as labor and merger-related costs, earnings were 58 cents a share.

Key Issues: Verizon has projected revenue will accelerate each quarter throughout the year. Last quarter, the company more than tripled its profit with the addition of the iPhone and attracted new subscribers to Verizon Wireless, which it owns jointly with Vodafone Group PLC (VOD, VOD.LN), with devices for its next-generation network, such as HTC Corp.'s (HTCXF, 2498.TW) ThunderBolt. Verizon also closed its $1.4 billion acquisition of data center operator Terremark Worldwide in April, a move that expands its networking and cloud-computing services. Like many telecom operators, the company is moving toward selling processing power, data storage and software-hosting services over the Internet to replace its shrinking landline business.

 
    Sprint Nextel Corp. (S) - reports July 28

Wall Street Expectations: Analysts forecast a loss of 12 cents a share on $8.3 billion in revenue. The company reported a loss of 25 cents a share, including a 10-cent charge related to the increase in valuation allowance on deferred tax assets, on revenue of $8 billion a year earlier.

Key Issues: Sprint Nextel's prepaid and wholesale businesses helped add 1.1 million net new customers last quarter, the most in five years. Yet Sprint's streak of losses continued as the once sole carrier with a next-generation wireless service battles new entrants in the 4G arena, including Verizon, AT&T and T-Mobile. The third-biggest wireless carrier in the U.S. is reportedly in advanced talks to rent space on its wireless network to startups LightSquared and Clearwire Corp. (CLWR), according to The Wall Street Journal, citing people familiar with the matter. The deal would give Sprint another revenue source and access to spectrum needed to support a nationwide 4G network of its own.

 
    Motorola Mobility Holdings Inc. (MMI) - reports July 28

Wall Street Expectations: Analysts forecast a profit of 6 cents a share on $3.1 billion in revenue. The smartphone and set-top box company split from Motorola Inc.'s business mobile and networks operation in January.

Key Issues: Motorola Mobility is trying to tap into the growing tablet market, currently dominated by the Apple iPad. Motorola Mobility shipped more Xoom tablets than projected in the first quarter and expects more growth for the second quarter with expanded distribution to different carriers and countries. But analysts at BMO downgraded the company to underperform late last month, saying Motorola's share of the Android-powered smartphone market plunged to 14% from 33% in the year-earlier first quarter and more competition is on the way. Most of the company's revenue comes from smartphones and Motorola is working to diversify its customer base to defend against the potential loss of T-Mobile, a key customer.

 
    CenturyLink Inc. (CTL) - reports Aug. 3

Wall Street Expectations: Analysts forecast a profit of 66 cents a share on $4.4 billion in revenue. The company's profit was 79 cents a share, or 88 cents excluding merger and other impacts, on revenue of $1.8 billion a year earlier.

Key Issues: The company, which primarily serves rural areas, is targeting business customers as its consumer subscriptions continue a steady decline, with cellphones saturating the market. The company's $2.5 billion purchase of Savvis Inc. (SVVS) is expected to close Friday, a move that expands CenturyLink's hosting and cloud-based services and would further increase its ability to attract business customers. This is also CenturyLink's first quarterly report since its $10.6 billion acquisition of Qwest Communications in April created the nation's third-largest landline communications provider.

(The Thomson Reuters financial estimates and year-earlier figures may not be comparable due to one-time items and other adjustments.)

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com

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