Can AT&T Break Out of Its Range?
T = Trends for a Stock’s Movement
AT&T is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services, and long-distance services. AT&T operates in four segments: Wireless, Wireline, Advertising Solutions, and Other. The communications products offered through AT&T’s segments reach audiences using just about every widely adopted medium: Internet, voice, television, and mobile. As consumers continue to adopt this technology, providers like AT&T stand to see rising profits.
AT&T CEO Randall Stephenson complained about the high cost of smartphone subsidies at an investor conference in New York, saying that the days of wireless carriers subsidizing the price of expensive smartphones will soon be over as smartphone penetration inches closer to 100 percent. “When you’re growing the business initially, you have to do aggressive device subsidies to get people on the network,” Stephen said, according to a report from CNET. “But as you approach 90 percent penetration, you move into maintenance mode. That means more device upgrades. And the model has to change. You can’t afford to subsidize devices like that.”