U.S. telecom operator AT&T has updated its strategy and announced financial expectations through 2023, with a clear message of a return to core communications capabilities and a particular focus on investments in fiber and 5G mobile networks.
Central to the new strategy is the WarnerMedia-Discovery merger deal, which is expected to close in the second quarter of this year, a move that AT&T CEO John Stankey said will put the company "at the starting line of a new era" while it stands at the "the dawn of a new era of connectivity.
Explaining what the post-merger divestiture with Warner will do for the company, John Stankey said, "The transformation we've undertaken over the past 18 months has brought us to this point while delivering excellent operational results. We will become a more minimalist, focused company that aspires to be the best broadband provider in the United States."
He spoke of "our plans to increase investment in our key growth areas - 5G and fiber. At the same time, we will continue to focus on developing customer relationships and continuously improving our execution to enhance the customer experience and deliver growth and returns for our shareholders ...... As new business models that require pervasive, high-performance connectivity continue to emerge, we are poised to deliver."
AT&T's ambition is to meet the challenge of competitors such as Verizon to become "the best broadband provider in America. To achieve this goal, the company will build a best-in-class fiber-based network and own and operate both fiber and wireless networks, with its so-called "economy of ownership" brand providing better flexibility to deliver higher quality broadband to businesses and consumers in more places.
AT&T plans to double its fiber network coverage to more than 30 million premises locations, a growth figure based on customer premises locations in the second quarter of 2021. This includes tripling its enterprise customer premises locations to 5 million. By doing so, the company expects to increase coverage by 3.5 million to 4 million customer premises locations annually.
The company also hopes to enhance its 5G network by deploying 120 MHz of mid-band spectrum and reach more than 200 million U.S. people by the end of 2023. The mid-band spectrum will support faster speeds, greater capacity and lower latency and complement the company's existing 5G coverage, with AT&T's existing 5G network covering more than 255 million people in more than 16,000 cities and towns.
AT&T also sees opportunities in its ability to offer symmetrical product offerings to consumers and enterprises, as well as its expansion into the under-penetrated SMB customer segment. The company says these customers want reliability, speed and simplicity, and AT&T is confident it can deliver all three: a reliable fiber and 5G network with the fastest fiber speeds in the U.S., and a streamlined experience with easy-to-understand pricing.
AT&T is also developing software products on top of its network connectivity and working with partners to develop new services for the enterprise. These include network edge services through a partnership with Microsoft Azure and Google Cloud; 5G private network services for businesses, universities or the public sector that seamlessly integrate with a nationwide macro network for cellular private networks; and secure, reliable network connectivity offerings in today's mixed offline and online work environments.
