AT&T is developing new initiatives that take advantage of emerging technologies. These initiatives, especially in high-speed internet and video services, have high potential for AT&T and could help AT&T maintain its position at the top of the telecommunications industry.
The telecommunications regulatory environment in which AT&T operates is constantly improving. Since 2005, the DOJ and the FCC have consistently ruled in favor of AT&T and its regulations have been pro-industry.
AT&T’s recent mergers should continue to result in synergies. Its 2005 merger with SBC has yielded $15B in savings thus far, and could produce up to $18B total. Furthermore, marketing synergies have the potential to significantly reduce costs as AT&T focuses on branding only one company instead of three.
AT&T has a very large customer base. Cingular Wireless is the nation’s largest wireless carrier and AT&T’s high-speed internet business is the largest owned by a phone company. This customer base potentially gives the company more stability and the ability to expand revenues without taking too many risks.