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The company’s strategic shift from upgrading its network with faster fiber-optic lines to focusing on 5G home service has been underway since its initial significant expansion in August. This decision was driven by consumer preference for the competitive pricing and easy self-installation of 5G home internet over AT&T’s old DSL service.
Despite this shift towards 5G technology, AT&T’s CEO John Stankey has stated that fiber will remain the ultimate connection method for its customers. He views Internet Air as a key part of their “connectivity toolbox” and has expressed satisfaction with its early positive reception.
The service currently has 25,000 users as per the Q3 earnings call. This figure is considerably smaller than T-Mobile’s 4.24 million and Verizon (NYSE:VZ)’s 2.68 million FWA users. However, the addition of these new markets could potentially boost AT&T’s user base.
The pricing of the service is set at $55 per month; however, for unlimited wireless subscribers, it is discounted to $35 monthly. Additionally, participants in the Affordable Connectivity Program are eligible for a $30 monthly discount on this service, with a $75 discount available to those on qualifying Tribal lands.
Stankey also highlighted a net broadband growth of 15,000 subscribers for the quarter and expects significant long-term advantages from the merging of 5G and fiber technologies.
AT&T, a prominent player in the Diversified Telecommunication Services industry, has made notable strides in recent times. With a significant market cap of 112.47B USD, the company has shown a strong return over the last three months, as indicated by InvestingPro data.
InvestingPro Tips highlight that AT&T’s net income is expected to grow this year, which aligns with the company’s strategic shift towards 5G technology. However, it’s important to note that the company’s short-term obligations exceed its liquid assets, suggesting a need for careful financial management.
Moreover, AT&T has a reputation for rewarding its shareholders, having maintained dividend payments for an impressive 40 consecutive years. The company’s dividend yield as of the end of 2023 stood at 6.99%, a fact that potential investors may find appealing.
For more insightful tips and real-time data, consider the InvestingPro product, which offers numerous additional tips to guide your investment decisions.
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