Let’s take a closer look at how AT&T is reshuffling the cards for future and growth, and what they are doing or going to do with AI. This is what business customers, consumers, investors and workers need to know about the company and the industry and what to expect going forward. Something they are not hearing enough about.
As AT&T winds down their traditional Plain Old Telephone Service (POTS) telephone network and services, they are also pumping plenty of cash into newer growth areas like 5G wireless and broadband. Plus, they are upping the ante with a variety of AI capabilities for their own operations and for customer use.
However, AI is confusing, and the strategy moving forward is not yet clear enough for me. So, let’s take a closer look at AT&T and what they will look like tomorrow.
First, let’s look at the past decade, then where AT&T is today. They have been through one heck of a rough decade after a period of strength.
Fortunately, now they seem to be emerging in what we hope is a solid, long-term growth track with newer services and changing technology as the industry all around them changes as well.
Growth path in telecommunications is changing
Over the past decade, AT&T seemed to assume traditional communications services would remain, plus new technologies would simply add to the mix. This is the way the telecommunications industry has historically operated.
This time, that was a wrong assumption. And it was wrong for every competitor in the space.
Today, we are not just adding new technology to the space like AI, but we are also ending the old and swapping it out for the new. POTS is giving way to wireless, VoIP, broadband and so much more.
Cable TV companies also seeing a sea-change in services and technology
This transformation is not just affecting the telephone companies. The entire telecommunications industry is being re-written.
The same thing is happening with cable television companies as well. We are also seeing a massive shift from established and traditional cable TV services to streaming services, broadband and wireless services.
Today, the larger cable TV companies are seeing a dramatic reduction of users for traditional cable TV. I am told they are down to less that 50% market share.
Smaller cable TV companies are being hit even harder. Some of them have less than 10% market share and are already exiting the basic cable TV business.
So, going forward, cable TV companies will be leaning on broadband, streaming, wireless and of course, AI.
AT&T and Verizon took wrong turn during past decade
Massive changes are impacting telephone and cable TV companies. And that is why every telecommunications company needs to reinvent themselves and their offerings and lead in that industry wide evolution. They cannot ignore this change and expect to continue to succeed.
Unfortunately, they took a wrong turn during the past decade. AT&T acquired Warner Media assets including Warner Brothers Studio, CNN and DirecTV. Verizon also took a wrong turn and acquired AOL and Yahoo.
After giving it the good-ole-college-try, both AT&T and Verizon both failed. Since then, they have spent the past few years trying to regroup and searching for new growth opportunities to make their investors happy.
During recent years we have seen 5G enter the picture and new technology like AI start to transform every industry including wireless, broadband, telecommunications, pay TV and more.
AT&T must stay with growth-wave, or they will be left behind
This time of change and transformation has only increased the pressure on AT&T. They need to stay with the moving change wave which is redefining the industry, or it will move forward, leaving them behind.
Companies who can see the direction the industry is heading, can ride the growth wave. Those who cannot, will miss this growth opportunity and the growth wave will move ahead without them.
That’s the risk, challenge and growth opportunity AT&T faces today.
AI is new technology that is changing AT&T and telecom industry
Artificial Intelligence is one of the new technologies which is suddenly in the mix. In fact, most CEOs don’t really understand the depth of change this represents. Today, they are still trying to figure out the best way to let this new technology keep them in a leadership position.
AI will grow and change over time. However, companies like AT&T need to, at least take some initial steps into this new technology that makes sense to the rest of the world including investors and customers, today.
AI is both new but has also been around for decades. That dichotomy, that push-and-pull is a growth opportunity, but only if AT&T hits the nail on the head, and customers and investors both understand and agree with their path.
How will AT&T use AI, GenAI and more to transform itself and win?
Today, we are starting to hear how AT&T is beginning to work with a variety of AI technologies including GenAI or Generative AI. While this sounds good, and like they are heading in the right direction, and while I hope they indeed are, we will still have to wait and see whether their activity in the AI area is successful or not.
However, AT&T needs to lead in AI. They need to spend more time talking about the changes including AI that will define them moving forward.
AT&T is a strong company, and I want them to succeed. That being said, we need to watch them. They have taken some wrong turns in the past. Recently in fact. We all remember WarnerMedia.
AT&T today is really SBC, which acquired Ma Bell and others
We have to remember, this AT&T is not the same old AT&T that has been with us for a century and a half, started by Alexander Graham Bell.
The original AT&T was on the verge of bankruptcy in the late 1990’s. It was ultimately acquired by the baby bell SBC in the mid 2000s.
SBC decided to use the historic AT&T name and spent several years digesting this acquisition, along with others like Cingular, PacTel, Ameritech and others.
Setting history aside, the AT&T of today has made several strong moves and grew into a much larger and much more successful company.
This is the same path Verizon took in their growth history of acquisitions and growth.
Telecommunications is going through massive reinvention with AI
Now, with changes that are rewriting the rules going forward with new technology like AI and new services like telephone, entertainment, streaming and communications, we simply do not know the rules that we will play by in order to win.
AT&T has one heck of a big challenge ahead of them. In fact, this is the same challenge they have faced over the past decade, plus more.
Their past moves and acquisitions during this time have not solved their problems. We hope these new moves with wireless, broadband and AI will be the roots of a strong company and industry moving forward.
We do not yet know the success formula for telecom of tomorrow
However, we just don’t yet know the path forward for AT&T, Verizon, Comcast Xfinity, Charter Spectrum, Altice, Cox and others. How will they do as the world changes around them? Plus, there are many newcomers entering the playing field.
I believe that today, companies like AT&T are too big and too important to fail. That gives them some time to find the right growth path. I hope they do. We may see a time with some companies successfully transforming and others, not so much.
Today, we live in uncertain times full of rich growth opportunities, challenges and risk.
Companies must have the right strategy to stay with the changing and moving growth curve. Either that or they may be left behind as the world changes.
So, let’s keep our eyes on AT&T and the entire communications industry. Let’s hope they talk more about what they will look like moving forward. That would make investors and customers more secure.
