AT&T is explaining their recovery path at their 2022 AT&T Analyst and Investor Day. They laid out their growth strategy going forward after they complete their WarnerMedia divestiture. Based on what they say, they are now on a recovery path after struggling over the past decade. Their new growth strategy focuses on their core, which are services like 5G, wireless, telecom and internet. Sounds good, so far. So, let’s take a closer look at their next growth strategy and if it is on track.
The path they are outlining is where they should have been focusing during the last decade. However, during that time they tried to expand way beyond their core competence into other industries like pay TV and entertainment with acquisitions like DirecTV and WarnerMedia.
AT&T was unfocused, like a ship without a rudder
While the past decade was an aggressive growth strategy, they ran into several huge roadblocks.
· One, the cable TV, IPTV and pay TV continued its wave of change.
· Two, new services like streaming TV entered the picture with loads of new competition.
· Three, WarnerMedia assets like CNN, Warner Brothers and others were unknown to AT&T.
· Four, 5G wireless started its rapid growth wave and AT&T was not focused on it like they should have been.
All of these and more created an unfocused company focused on growth at any cost but ended up being a ship without a rudder.
AT&T core is wireless internet, data, telecom
Add Covid-19 to the mix and you can see how AT&T went seriously off-track. They needed to focus on their core. That means 5G, wireless, telecom and Internet.
This plan failed over the last decade and now they are getting out of it as quickly as they can and right the ship.
Their new plan seems like they are going to focus on their core strengths. Something I am excited about. That is exactly where they should have always been focused.
AT&T’s new growth strategy seems like the right path
We can understand their desire to grow beyond their core. After all, the industry has been changing and consolidating for decades.
However, they must also make sure they continue to build on and strengthen their core. That was the weak link in their chain. They focused on learning new industries and let their core soften.
That’s why the last decade was a distraction for the company. I am glad they are getting back to their core.
It will take them time and effort, but this is the right direction for the company.
AT&T Mobility now in third place after Verizon Wireless, T-Mobile
Now we will just have to wait and see if they can juice up their growth engines once again. They were always battling with Verizon for the number one spot in wireless.
During the last several years they were so distracted, their wireless business was negatively impacted, and T-Mobile passed them.
Today, AT&T is number three after Verizon and T-Mobile. That’s embarrassing for Ma Bell.
This is the price they are paying today for going off-course. However, that can be corrected if they focus on the right goals going forward.
AT&T investing in 5G wireless and fiber network
At the 2022 AT&T Analyst and Investor Day they discussed continuing to build a fiber network as well as their 5G wireless network. This sounds like two different things. However, if you think about it, it is all part of one larger strategy.
Let me explain. You may have thought your wireless call mysteriously travels over wireless airwaves until it reached its destination. But that’s not how wireless works.
A wireless call is only wireless until the call connects to the nearest cell tower. After that, the call goes over a land-line network. Meaning something like a traditional telephone network or a new fiber data network.
AT&T, Verizon, T-Mobile, US Cellular, Dish, C-Spire and others
That’s why landline and data networks are just as important as wireless for large and small wireless networks like Verizon, T-Mobile, AT&T, US Cellular, Dish, C-Spire and others.
Yesterday, the hard-wire networks used to be regular telephone or data networks. Today, as carriers increasingly install fiber, they can carry more calls and more data, faster than ever.
These data streams can carry data, voice, video and everything else we send.
AT&T executives discussed the growth and changes occurring to their network. What is happening at AT&T in this regard, is very similar to what is happening at other wireless carriers as well.
Every wireless carrier is focused on creating a faster and more immediate connection for users. This means beefing up their wireless and wire line networks.
5G wireless rollout has been disappointing so far
And that’s what is so exciting about the wireless industry today.
Granted, 5G speeds have been a disappointment so far. Carrier public relations, advertising and marketing claims have gotten way out in front of reality.
Plus, there are so many terms using 5G that confuse the marketplace.
Carriers apparently believed it was more important to keep up with the competition with regards to 5G that they kept weaving bigger and bigger stories.
AT&T CEO John Stankey getting company back on growth track
Unfortunately, most users still do not get or use 5G services today. That will change over time. 5G is real and is being installed and many users do experience the higher speeds.
However, the 5G experience has so far been very disappointing to say the least. Wireless carriers got way out ahead of their headlights.
AT&T CEO John Stankey has been working on transforming the company back to its core business and has been making progress. However, it is a long and expensive road ahead.
AT&T wants to become top broadband provider
It sounds like AT&T wants to become the top broadband provider in the United States. That’s one reason they are building their wireless and fiber network. They say that they are working toward rapid growth in this area.
A company with a national footprint has a massive job ahead of it. However, this is their core and because of that, this is a good goal to strive for.
I am glad to see AT&T getting their feet planted in the ground while reaching for the stars once again. Perhaps under the leadership of John Stankey, they will finally get back on a healthy and long-term growth track. So far, their strategy looks sound. Now they must deliver. Stay tuned.
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