While AT&T has several innovative initiatives on deck, their success is not assured. If these projects (including Project Lightspeed and video services) do not achieve their goals, AT&T could face serious competition from new entrants and new technologies.
Most of AT&T’s revenue comes from its oldest business—especially fixed-line local services and long distance. These are in a potentially precarious position because they are in increasingly competitive areas and face technology substitution.
Despite the potential upsides to its recent mergers, AT&T faces serious challenges in integrating its new acquisitions. Over the next few years, AT&T is undertaking several significant initiatives including local phone upgrades and multiple business integrations.