AT&T Chief Stresses Broadband, Wireless, Sees No Sign of Turnaround Yet
AT&T is investing as much as it can in its broadband infrastructure, CEO Randall Stephenson said Thursday at the Sanford Bernstein Conference. Some expect AT&T to apply for broadband stimulus money, but Stephenson said the company is waiting to see how it will be distributed. Under the new administration, issues like net neutrality, intercarrier compensation and USF reform aren’t going away, he said. Meanwhile, AT&T, particularly its enterprise business, is still feeling the economic pressure, he said.
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AT&T is working as fast as it can on broadband deployment and expansion, Stephenson said, noting the company’s plans to upgrade its 3G network to double wireless broadband speed and to expand its spectrum footprint. On the slower wireline side, Stephenson said, he doesn’t plan to divest any rural assets. The company is pushing its U-verse video service to power wireline growth. The next step is taking the service mobile, he said. Satellite has long been pivotal to AT&T, Stephenson said, noting the company’s partnership with DirecTV. “You will continue to see us aggressively selling satellite TV,” he said.
Stephenson was upbeat on the regulatory review of AT&T’s acquisition of Centennial Wireless and its swap of markets with Verizon Wireless. He also mentioned prepaid growth. The company is experimenting with a $3 a day unlimited wireless plan under its Go Phone service. The price is in the “sweet spot” of the pre-paid market, he said.
“I'm not seeing green shoots” in the economy, Stephenson said. “But we haven’t seen any deterioration, either.” The consumer wireless and home broadband business are performing well, but the business market is still stressed from falling employment and credit restrictions, he said. Stephenson says business is becoming more and more reliant on wireless.
The company is still negotiating with its union on several contracts covering wireline workers. Discussions were very productive and negotiations are going well, Stephenson said, and he’s confident that an agreement will be reached.