What's Going On With AT&T, Verizon, Lumen Tech Stocks Wednesday?

AT&T Inc T and peer telecom stocks are trading higher Wednesday after the former said less than 10% of its nationwide copper-wire telecom network has lead-clad cables in response to a last week's story indicating several telecom giants have networks of underground cables that are covered in toxic lead.

The telecom firm said lead-clad cables comprise a small part of its network of about 2 million miles of cable. Of that, about two-thirds are buried or in conduit, followed by aerial lines on poles and a tiny portion running underwater, Bloomberg cites a U.S. District Court filing.

Last week a report indicated lead contamination in more than 2,000 telecom cables crisscrossing the country, including at playgrounds, bus stops, and waterways like the Detroit River in Michigan, the Passaic River in New Jersey, and Lake Tahoe. AT&T strongly disagreed with the reporting.

The Tuesday filing corresponded to a 2021 lawsuit against AT&T by the California Sportfishing Protection Alliance seeking to remove lead-covered cables from Lake Tahoe. AT&T wants to pause the cable removal work and invite experts to evaluate the situation.

AT&T, Verizon Communications Inc VZ, and Lumen Technologies, Inc LUMN operate some of the most extensive networks in the U.S., and parts of those systems include lead-covered wires that date back to the early 20th century.

On Monday, Verizon confirmed testing various sites where lead was reported leaching into the ground from the wiring. 

AT&T and Verizon stocks have lost 14% and 10%, respectively, since the report on July 9.

AT&T confirmed conducting additional tests, including areas identified in the report, and offering free lead testing to union employees working with lead-covered cables.

Price Actions: T shares traded higher by 4.83% at $13.80 premarket on the last check Wednesday. LUMN shares traded higher by 3.70% at $1.68, and VZ shares traded higher by 4.06% at $33.58.

Photo by Tdorante10 via Wikimedia Commons