industry-news

AT&T: Focus Shift To 5G

Summary

 

  • AT&T continues to expand its LTE network, reducing the need for actual mobile 5G.
  • Google Trends supports the public view of the wireless giant as being in a solid position for the 5G transition.
  • The dividend is easily supported due to tax reform, providing a solid 5.7% yield to shareholders.

 

As the market focuses on the DOJ trial over the Time Warner (NYSE:TWX) merger and higher interest rates, the real key to the AT&T (NYSE:T) investment thesis is the move toward 5G and the dividend support. The wireless giant clearly has a marketing lead and first-mover advantage that will fend off competitors for now.

Results Improving

When AT&T reports Q1 results on April 25 after the market close, Morgan Stanley forecasts the wireless company improving the crucial postpaid phone net adds or, in this case, reducing the losses. The wireless giants AT&T and Verizon Communications (NYSE:VZ) are expected to report improving trends, though still trailing the numbers of Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS).

The numbers would support why the laggards are supposedly in merger talks yet again. Sprint has clearly lost all momentum in adding subscribers, as pricing gimmicks only last so long. While T-Mobile still dominates sub growth and wireless service revenues, the forecasted Q1 numbers suggest a narrowing lead.

5G Evolution

The suggestion is that the combination of the domestic wireless sector moving to 5G in the next few years and a reduction in low-hanging fruit places the leaders back in control. Basically, if a subscriber hasn't switched off the industry giants, the desire to move isn't that evident until the other providers change the network leadership situation.

life @ ibex.

Bring People
Together

Let's Talk

Want to learn more about how CLX can help your brand add more customers, keep more customers, and drive new revenue growth? Fill out the form to the right, and we’ll get back to you as soon as we can.

Office Locations

  • Canada
  • Jamaica
  • Nicaragua
  • Pakistan
  • Philippines
  • Senegal
  • United Kingdom
  • United States

Contact form

AT&T: Focus Shift To 5G

We think you’re awesome for referring someone!

Please Specify.

AT&T: Focus Shift To 5G

Check Status

Follow the status of your application by entering details in the box below.

OR

USE FORM ON THE LEFT TO CHECK YOUR JOB STATUS