AT&T's CEO has no plans to leave the company, unlike the CEOs of T-Mobile and Verizon.
Will John Stankey follow Mike Sievert and Hans Vestberg out the door?
AT&T's Q3 numbers, released Wednesday, exceeded expectations with 405,000 net postpaid phone additions, a key metric. The consensus forecast from analysts had estimated 334,100. Postpaid phone churn was .92%, up from .78% in the same quarter last year. Carriers aim for lower churn, as it reflects the percentage of customers discontinuing service.
During the quarter, AT&T acquired low and mid-band spectrum from EchoStar for about $23 billion, covering almost every U.S. market. AT&T's revenue for the quarter was $30.7 billion, slightly below analysts' estimates of $30.87 billion. Net income reached $9.7 billion, or 54 cents per share, aligning with forecasts. Investors reacted negatively, with the stock dropping 3.7%, or 94 cents, to close at $24.61 on Thursday.
CEO Stankey affirmed his commitment to remaining at AT&T, contrasting with executive departures at T-Mobile and Verizon. While not ruling out future acquisitions, Stankey emphasized that AT&T prefers self-driven growth, focusing on converging mobile and fiber services.
Stankey stated their tactic is to focus on converged customers, utilizing existing assets for success, with growth coming from within AT&T.
The $23 billion in spectrum acquired from EchoStar is now being deployed. AT&T plans to cover two-thirds of the U.S. population with its 3.45 GHz mid-band spectrum by mid-November to improve its 5G service and Internet Air performance. Following its spectrum sale, Boost Mobile now operates as a hybrid mobile network operator, with AT&T as its primary network operator.
Stankey is optimistic about low-earth orbit (LEO) satellites. AT&T's $155 million investment in AST SpaceMobile includes plans to use its LEO satellites, which are now launching, for a space-based cellular broadband network. Stankey envisions using this technology to track livestock or shipping containers in areas lacking cellular connectivity.
Stankey believes satellites, including SpaceX and AST's, will not replace cellular service for daily wireless use. He cites the high costs and inability to match the performance of 5G cellular networks in urban areas.
Lastly, a book announcement! "Iconic Phones: Revolution at Your Fingertips," a coffee table book for tech enthusiasts, will be released in a few months. Follow the link for more details.
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