"Growth" Is A Misnomer When Applied To AT&T (T)

Dec 03, 2024

Significant debt. It is difficult to consistently grow when your debt obligations are 50% of free cash flow as will be the case for AT&T in 2026.
Competition. T’s growth plan does not address competition. Elon Musk’s Starlink charges approximately $120 per month vs. $90 per month for broadband. As Starlink adds customers to the network, it will be positioned to take prices down if it chooses, while consumer prices are only going in one direction at T. Apple has deployed satellites, Google has deployed limited fiber over the past 15 years. If any of these three companies - particularly Starlink - were to make a big consumer push, I am not sure how AT&T would fight back. It would be getting squeezed from competition on the one hand and by its debt obligations on the other.
AT&T’s public presentation will be at 2pm ET today: HERE.