1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
INVESTOR
We believe AT&T's renewed focus on telecom, along with a stronger financial position and a clear plan to invest in its networks, will serve investors far better than its previous media strategy. Aggressively extending fiber and 5G coverage to more locations builds on its core assets—its existing network and customer relationships—and should allow AT&T to gradually expand its share of telecom spending.
The wireless business contributes about two thirds of AT&T’s revenue following the spinoff of WarnerMedia. The firm is the third-largest U.S. wireless carrier, connecting 68 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 20% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 10% of revenue, primarily consist of broadband internet access service. AT&T also has a sizable presence in Mexico, serving 21 million customers, but this business only accounts for 2% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.
