AT&T® Expects Strategic Business Services to Drive Revenue Growth

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The best internet provider, AT&T®, is confident about the growth of its wireline business services just as more customers switch to AT&T’s Ethernet and SD-WAN services. The Chief Financial Officer (CFO) of AT&T®, John Stephens, told in a recent investor conference that the fourth quarter revenue indicates stability compared to previous years. “Fourth quarter sequentially is the first quarter where we did not shrink revenues. Year-over-year we still were down 3-4%, but in prior years it had been closer to 6%.”

AT&T® also noted that the revenue growth in the company’s wireline business services partially offsets the decline in legacy services in the fourth quarter. Stephens further added that more and more customers are in the process of adopting the next-gen strategic services, which sets a new benchmark for the revenue growth of AT&T® wireless business.

“What’s happened is our customers have embraced the strategic services,” Stephens said. “Strategic services are over a $12 billion annual business and are over 42% or so of our revenue and are still growing quickly.”

Speaking about the revenue growth of AT&T® in the Deutsche Bank Media, Telecom and Business Services Conference, the AT&T® CFO also said that the company will come across an inflection point in the future, wherein the revenue decline in legacy services will be surpassed by the growth in strategic business services.

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“As we get past this inflection point where strategic services are growing at a faster than the degradation of legacy, we can get to a point where we are growing revenues,” Stephens said. “We’re not predicting that but we see the opportunity to do that.”

The sales team of AT&T® is adopting two methods in order to achieve the revenue goals of strategic business services, which is either by converting legacy to strategic services or by retaining the legacy services. While wireline services continue to be a priority for AT&T®, the best internet provider is still looking to drive wireless revenue to help IoT-based business solutions provided by the Telco.

“As you build this FirstNet network out, things like IoT and coverage for business customers or connect factories that are automated all improve dramatically, and with that comes that opportunity to sell these wireless services,” said Stephens in the recent investor conference held at Palm Beach.

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