Is AT&T on the right track building more fiber networks in the age of cellular networks

By steverobert | wealth concepts | 19 May 2023


AT&T is on a different path from its rivals Verizon and T-Mobile US, which are relying on cellular towers that link their smartphone customers. AT&T is testing a similar service, but executives say fiber remains the long-term focus. AT&T spent about $24 billion on its fiber and 5G networks last year.


Fiber-optic cables can carry much more data than radio waves. That higher capacity is crucial for video calls, streaming, videogames, and other services,
AT&T offers its fiber service starting at $55 a month for up to 300 Mbs (double cellular rates) to as high as $180 a month for 5 Gb speeds. The average AT&T fiber internet customer pays about $66 a month, up 9% from last year. My new current comcast is $25 for 2 years, so I hope rates will change in the future. No AT&T service or cellular were available in my area.

With the cost of running wires, needing access to poles and the equipment is very expensive. So can AT&T maintain its position in the Internet access arena as cellular become more powerful.


Wires are costly, as people push things like solar do you think the electric companies will let you disconnect and not pay that line charge every month. Even there they convince you the need to remain connected so you can sell back extra electricity and then get more if there is no sunlight for a while. The monthly line charge is there and will not go away even if you have enough solar and storage to disconnect.


At least with AT&T or comcast you can drop the service and not pay for the line charge anymore for now. Will that last?

So, with the stock price falling to $16.56 from the $20 range is the giants time as a dividend royalty and stable stock done?

I own AT&T and reinvested the dividends for now, but I’ll watch the market to see if cellular will overtake wired internet.

 

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steverobert
steverobert

network professional and real estate investor


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