What's Happening?
AT&T has announced its third-quarter financial results, reporting revenues of $30.7 billion and a net income of $9.7 billion, a significant improvement from the previous year's loss. The company attributes this growth to the sale of its DIRECTV investment.
AT&T's mobility service revenues increased by 2.3% year-over-year, reaching $16.9 billion, while consumer fiber broadband revenues rose by 16.8% to $2.2 billion. The company added 288,000 new fiber customers and 270,000 Internet Air customers, surpassing 10 million AT&T Fiber subscribers. CEO John Stankey highlighted the expansion of Fixed Wireless Access service across 47 states and announced plans to acquire Lumen Technologies' fiber assets and EchoStar's spectrum to enhance network capacity and accelerate 5G rollout.
Why It's Important?
AT&T's strong financial performance and strategic expansion plans are crucial for maintaining its competitive edge in the telecommunications industry. The acquisition of Lumen's fiber assets and EchoStar's spectrum will significantly enhance AT&T's infrastructure, supporting its long-term network strategy and 5G deployment. This expansion is expected to improve service quality and increase customer satisfaction, potentially leading to higher market share. The growth in fiber and wireless services also indicates a shift in consumer demand towards faster and more reliable internet services, which could impact other industry players.
What's Next?
AT&T plans to close the acquisition of Lumen's fiber assets in early 2026 and EchoStar's spectrum in the first half of 2026. The company aims to deploy the acquired mid-band spectrum to cover nearly two-thirds of the U.S. population by mid-November. AT&T is also looking to bring in an equity partner for its new subsidiary, NetworkCo, within a year of closing the Lumen deal. These steps are expected to further strengthen AT&T's network capabilities and support its growth strategy.
