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AT&t Corp. is seeking another $3 billion in federal stimulus funding as part of a $3 trillion package to help Canadian consumers with broadband, telecoms and cable TV service.
The money, which includes $3bn for the wireless broadband provider, will help fund AT>alk’s network upgrade plans, said Paul O’Leary, AT&rtales president of the telecommunications company’s Canada unit.
O’Leigh said the government has given AT<ales $2.9 billion to help fund its network upgrades and other projects over the next decade.
O<als telecom plans have been slowed by the recession, and some consumers have complained about slow speeds.
“The network upgrades are going to help our overall network,” O’Learysaid in a statement.
The federal government has pledged $5.3 billion over 10 years to build out its national broadband network.
AT&mtales net profit fell 5.4% to $2 billion in the second quarter, while its advertising revenue fell 6.2%.
Its operating profit fell 7.2% to about $4 billion.
Oireachtas finance committee chairman Kevin Brennan said AT&s $3,865 million in stimulus was the largest amount of stimulus to date.
He said the money was intended to help consumers and businesses with telecommunications costs.
“It’s a tremendous amount of money,” Brennan said in an interview.
“We’re not going to let this company be shut down, we want to keep the country moving forward.”
Brennan said the funding would be used for upgrades to existing networks and new ones.
“If we can build the capacity to keep up with demand and service, then that’s great,” Brennan told reporters.
The deal was first reported by The Wall Street Journal.
The company, which was founded in 1878, has more than 600,000 employees worldwide.