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AT&T has launched an exclusive partnership with LifeMD to provide eligible wireless and fiber customers with a free virtual healthcare membership. The service offers on-demand access to doctors and pharmacy services, a benefit the company values at about $228 per year.
This is a move to reduce churn, which is the rate at which customers leave for a competitor. By bundling a valuable service that people use regularly, AT&T makes its internet and phone plans harder to give up. For a mature business where winning new customers is expensive, keeping the ones it already has is the most efficient way to protect its cash flow.
Source: PRNewsWire
AT&T announced its promotional offers for the latest iPhone 18 series, including a trade-in deal that applies to any old iPhone regardless of its condition. These aggressive promotions are a standard part of the company's strategy to keep its current customers from switching to rivals and to attract new ones to its network. While these deals help keep churn low, the rate at which customers leave for a competitor, they also come with a cost. The company essentially pays for a portion of the customer's phone in exchange for a multi-year service commitment. For a long-term owner, the key is whether these offers help AT&T maintain its stable base of wireless subscribers without spending too much on subsidies.
Source: PRNewsWire
Fazal Merchant joined the company's board of directors on Wednesday. He previously served as the co-CEO of Tanium, a cybersecurity firm, and held leadership roles at DreamWorks Animation and DirecTV. While adding new expertise to the board is a routine part of corporate governance, this change does not shift the company's current strategy of focusing on its fiber and 5G wireless networks.
Source: PRNewsWire
AT&T filed a routine update with regulators listing its various outstanding global notes and preferred stock series. The filing includes details on dozens of different debt instruments with maturity dates stretching from 2026 out to 2066. While the filing was marked as a leadership change in some systems, the text itself is a standard administrative listing of the company's registered securities. For a company with a heavy debt load like AT&T, these filings are routine parts of managing its complex balance sheet and do not signal a change in the business's strategy or health.
Source: 8-K filing
AT&T is teaming up with Amazon to offer satellite-based internet to its business clients. This partnership uses Amazon’s satellite network to provide a connection for remote offices or industrial sites that are difficult to reach with traditional fiber or wireless towers. It is a direct move to compete with SpaceX, which has taken an early lead in the satellite internet market.
For AT&T, this is a smart way to fill gaps in its network without the massive cost of building its own satellite fleet. By adding this to its existing fiber and 5G services, the company can offer a complete package to large businesses. This helps keep corporate customers from switching to rivals who might already offer satellite options.
Source: Market Watch
Management has cleared its own profit targets for eight straight quarters, showing they have a firm handle on costs even as the company moves away from its media era.
| Expectation | |
|---|---|
| EPS | $0.62 |
| Revenue | $31.69B |