AT&T Inc.

Strategic Moves

• Focus on Fiber Expansion:

  • AT&T is setting ambitious targets for fiber revenue growth, expecting mid-teens growth consistent with multiyear guidance shared at the Analyst and Investor Day.
  • Fiber penetration is currently at 40%, with a goal to increase this number and enhance converged service offerings.

• Integration of AI and Cloud Technologies:

  • The company is leveraging AI to improve customer relationships, streamline operations, and reduce overall costs. Efforts include enhancing call center efficiency and potentially utilizing generative AI for code development.
  • AT&T is working on integrating AI more effectively across operations, which is anticipated to enhance service delivery and operational efficiency.

• Transitioning Away from Legacy Services:

  • AT&T is planning to decommission its legacy copper network as part of a broader strategy to modernize its infrastructure. Steps include discontinuing legacy voice services and transitioning approximately 1,300 wire centers.
  • This restructuring aligns with expectations for improved margins as higher-margin fiber revenues replace declining legacy services.

• Customer-centric Initiatives:

  • The launch of the AT&T Guarantee promises dependable connectivity and customer service, aimed at improving customer satisfaction and loyalty, thereby enhancing competitive positioning against rivals.
  • Efforts to simplify customer experiences and processes are linked to the company's continued improvements in broadband customer satisfaction and Net Promoter Scores.

• Capital Allocation:

  • AT&T has outlined a capital investment strategy of around $22 billion aimed at modernizing wireless networks and expanding fiber footprint.
  • The company has committed to a comprehensive $40 billion shareholder return plan over three years, which includes dividends and share repurchases.

• Regulatory Engagement:

  • The company is actively collaborating with the FCC to accelerate the transition towards modern communication infrastructure and leverage potential economic incentives from the administration.

These strategic initiatives are expected to position AT&T for sustainable growth and enhanced operational performance as it moves towards 2025 and beyond.