- Stankey called bundled convergence users the most valuable customers
- The operator plans to take a more convergence-focused approach to its numbers in 2026 and beyond
- The CEO, again, sang the praises of the Trump administration as regards its support of market-based investment
AT&T’s CEO John Stankey said on the operator’s fourth quarter and full-year earnings call this morning that Ma Bell’s converged strategy - where customers bundle both 5G and fiber connections - is delivering the “most valuable customers” to the carrier.
The operator said that it added 1.5 million postpaid - aka monthly contract - subscribers for the 5th year running and 421,000 postpaid adds for the quarter. “We estimate that our share of postpaid phone subscribers is 10% higher in areas where we have fiber,” the CEO said on the call.
AT&T expects mobility service revenue growth in the single digits over the next few years. “The company re-iterated that they still see mobility service revenue growth of 2-3% over the coming years, albeit this is not part of the new official guidance,” noted BNP Paribus in a research note about the results. AT&T said that bundled customers mean better churn for the operator but lower average revenue per user (ARPU) over the year.
AT&T said on the call that it intends to report its operating segments differently from the first quarter of 2026 to reflect this convergence focus. The firm said that it will report advanced connectivity and separate legacy results in Q1. These will combine 5G wireless, fiber-based wireless and Internet results, the advanced connectivity results contributed approximately 90% of consolidated revenues
Trump bumping and the spectrum game
As is typical for AT&T, Stankey talked up the telecom leadership of the Trump administration in glowing terms. “In my career, I’ve never seen federal policy this supportive of market-based investment in advanced networks,” Stankey said.
The CEO noted that AT&T still has capacity to join on the Trump admin’s spectrum auctions but will do so in a circumspect manner. “We have reserve capacity for other strategic options,” he said, noting that it will be less of a buffet rush and allow AT&T to pick its moments, “when it is appropriate to go and visit the buffet.”
AT&T has already started deploying its 3.45 GHz spectrum it got in its $23 billion deal with EchoStar. It said it will finish that deployment and close its $5.75 billion acquisition of Lumen’s mass markets fiber business early this year.
The numbers
AT&T reported a 3.6% increase in revenue at $33.5 billion year-on-year. Despite this, on a GAAP basis, AT&T reported a net income of $3.75 billion, slightly down compared with $4.03 billion 12 months ago, due to higher operating expenses.
AT&T’s shares are up 5.20% on the results at $24.20 a share.