We were never a media company and I'm glad we're rid of that segment since all it did was bring us down. That acquisition might be our biggest mistake yet, but I think it's not unfixable. Am I wrong to believe things will now improve since we will be fully focusing on our core business?
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Things will get worse before they get better.
Things will get better and we are heading in the right direction.
yes you are a fool for thinking you can make a change.
You funny!
It’s all becoming a wholesale business. The question is what can we develop to increase our revenue on the network. The issue is we cannot develop anything. Look around at senior leadership, do you really believe any of those folks have a imaginary thought in there head.
Look at how video from our investor day. That’s not leadership. That’s desperation trying to get the investing community to buy what T is selling.
$3 billion in cuts can be achieved by eliminating any future pension contributions, freezing the pension plan and putting the workforce on the ACA, by giving employees a fixed contribution for premiums.
The core business, Fiber and Mobility will make AT&T money, but those margins are much smaller so there will be less. Will have to leverage automation to optimize revenues to allow for capital reinvestment. Fingers crossed there is enough revenue to support both core businesses, if not one will have to go (bye Fiber).
The problem is that the core business is a commodity with decreasing revenue. Does anyone remember when DSL service was $75/month? The going rate for basic fiber is only $50/month and dollars are worth a lot less now. So we have to install expensive fiber everywhere but we get less money overall.
Remember when we could charge a premium for 50 GB of mobile data? Those days are gone too. Now it's unlimited for the same price and people are using hundreds of gigs per month.
Am I a fool to think things will improve?
Yes
Yes
Dreamer put your head in you hands. Dreamer nothing but a dreamer
Look for cuts in G&A, headcount and wage stagnation.
If they can manage debt, develop revenue sources from fiber and figure out a share buy back at some point, the company will have greener pastures ahead. The share price won’t increase until those things happen.
lovin it at jeni's org
Yes you are.
Still have about 3B in cuts to make. Where will these cuts come from? My best guess is major headcount reduction. The big picture will become more clear after the WM deal closes.
If I was there, I wouldn't look outside my business unit. We know POTS is going away. The old dsl piggybacked on the POTS billing system, so that is gone. Uverse is staying, and going fiber. Wireless is staying. Other aspects like data processing is being outsourced to cloud providers. Sales will stay. Sales is the most important part of the company, because without revenue, AT&T doesn't need technicians on the back end.
So, I'd only look at where I fit in. Take wireless or fiber. Those assets are worth more alive than dead, so they would continue to operate, and the jobs along with it, whether AT&T went bankrupt or not. So, let the big boys worry about keeping the company afloat.
As far as the massive debt is concerned, along with AT&T, the federal government has a debt problem, and it looks like the solution is to inflate the debt away. In that case, AT&T's debt will also inflate away.
We don't have a core business.