AT&T (T) investor relations material

Strategic investment and network vision

• Plans to invest $23–$24 billion annually through 2028, focusing on building an AI-ready network to meet surging bandwidth and uplink demand from technologies like AI, autonomous vehicles, and smart devices.

• Expects accelerated growth in subscribers and broadband, with step-ups in service revenues, EBITDA, and double-digit EPS, while maintaining attractive dividends and buybacks.

• Focus remains on organic growth, with recent acquisitions (EchoStar spectrum, Lumen fiber assets) aimed at expanding under-penetrated markets and leveraging rights of way for further buildout.

• Integration of Lumen assets is progressing, with plans to more than double fiber passings in acquired territories over five years, capitalizing on under-penetration and local expertise.

• Fiber footprint targeted to grow from 40 million to over 60 million locations by 2030, positioning for outsized wireless share gains through convergence.

Customer strategy and convergence

• Simplified offerings like Unlimited Your Way, OneConnect, and Build-A-Plan aim to attract value customers and reduce churn, focusing on simplicity, value, and choice.

• Bundling fiber and wireless services results in lowest churn, highest lifetime value, and superior customer satisfaction.

• Device subsidies are managed within budgets, with additional revenue streams from device insurance and upgrade programs; convergence reduces reliance on subsidies.

• Fixed wireless is used strategically to bridge gaps before fiber rollout or in areas where fiber is not planned, targeting under-penetrated wireless markets and small businesses.

• Advanced home internet (fiber and fixed wireless) is expected to see accelerated year-over-year growth in customer additions.

Business services and competitive landscape

• Advanced Connectivity business services stabilized for the first time in years, with expectations for low single-digit revenue growth over the next three years, driven by fiber and fixed wireless uptake.

• Sales strategies are tailored by business segment, leveraging distribution relationships for medium-sized businesses and retail channels for smaller ones.

• Satellite broadband is seen as a solution for the 1% of rural areas not covered by terrestrial infrastructure, with industry collaboration to ensure seamless coverage and shared spectrum resources.

• Long-term vision centers on modernizing networks, eliminating duplicate infrastructure, and achieving high margins, operating leverage, and strong cash flows.

• AI is integral to future strategy, with the network being built to be AI-ready and positioned ahead of competitors as data consumption rises.