AT&T (T) may invest in Malaysia cell phone operator

The largest U.S. phone company, AT&T (NYSE:T), may invest in the cell carrier that dominates the Malaysian market. The country's state-controlled phone firm Telekom Malaysia is "spinning off its mobile business into a separately listed firm, TM International, which will include its domestic Celcom unit and operations in nine other countries, including India, Indonesia, Bangladesh and Sri Lanka," according to Reuters.

AT&T has a problem in the U.S. Its landline business is no longer growing. Most homes in the US have a phone and VoIP offerings from cable are eating into that business. While the company's cellular business makes a great deal of money, it is estimated that there are now 250 million active handsets in America, so growth in wireless revenue may start to slow.

AT&T is entering the fiber-to-the-home business to compete for TV and broadband customers who use cable now. The future of that effort is uncertain.

What is certain is the wireless phone growth in emerging markets like Malaysia is exploding. AT&T could do its investors a significant favor by capitalizing on that trend.

Douglas A. McIntyre is an editor at 247wallst.com.