2018 same old AT&T

AT&T Inc. (NYSE:T) is in a world of hurt. The once dominant communications giant is fighting a two-front war for the survival of its key wireless and cable businesses. What’s worse, AT&T has no answer for its subscriber losses … and not even the completion of its pending acquisition of Time Warner Inc (NYSE:TWX) will save T stock.

AT&T Inc. (T) Is Losing the War for Subscribers

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The battle AT&T is fighting is one for subscribers. On one hand, the company’s DirecTV and U-Verse cable TV offerings continue to lose subscribers to cord-cutters. And the trend is picking up steam. According to a recent UBS study, cable TV subscriptions are “on pace for a 3.3% decline in 2017 and 4.0% in 2018.”

On the other hand, wireless subscribers are jumping ship and heading toward low-cost providers like T-Mobile USA Inc (NASDAQ:TMUS). Furthermore, T-Mobile recently upped the ante by offering free Netflix Inc (NASDAQ:NFLX) to unlimited wireless subscribers.

This last point underscores why the Time Warner deal is too little too late to help AT&T. Wireless subs already have free content from T-Mobile … and others are sure to follow suit. Meaning the TWX deal will merely bring AT&T back to T-Mobile’s level.

As for cable TV, content providers are already making plans for a world with significantly lower subscription rates. In fact, Walt Disney Co. (NYSE:DIS) provided the final nail in the coffin for cable TV when it announced in early August that it was pulling its content from Netflix and starting its own online streaming service … one that includes ESPN.

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9 replies (most recent on top)

As an employee I use Verizon, the coverage is much better in the Seattle area.

As an employee I use T-Mobile because it is cheaper an customer service is friendly and doesn't lie to you like AT&T does. Management is outdated: AT&T needs a leader at the top who is creative, they need a CFO so I can talk to the market that the market respects, they need someone in strategy that has a marketing background not Stankey or Donovan who were a mistake. Putting Stankey and Donovan in charge of operations is a big mistake neither know how to drive growth. Lori Lee is leading her company because she is a woman and no other qualifications

Many years ago I started to work for a small town telephone company. I advanced, then when the wireless revolution began, I made the move into wireless, working there for many years. ATT bought the wireless company I was working for in 2014, and I went to work for ATT. I honestly felt as though I had been transported back in time by decades. The old fashioned “telephone company” attitude was still the way ATT operated. They have not evolved into the new marketplace.

Facebook is just staring to get in the video space. When they figure it out, they will eat T's breakfast, lunch, and dinner.

Not very well informed, that's management at its best

I disagree, AT&T is a great company. Our Direct TV streaming service is so popular we had to stop advertising because we couldn't handle the growth. We have been on the cutting edge of technology for years and will be for many to come. I have worked as a tech for 17 years and was recently promoted to management. The company saw all my hard work and I was rewarded for it. I'm very proud to say I work here.

Management They are still trying to figure why people not buying their streaming service, Ithey want to call the shots, no asking anyone outside AT&T , maybe Amazon or Google could help

Disagree, the new T way more venemus and fatal, just as the tasteless and low quality leadership we have, just look a picture of randy to find out why

It's a poorly run company depending on buy-outs to show growth. Tech wise, they're so far behind it's sad.

Thread regarding AT&T layoffs

2018 same old AT&T

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