AT&T Inc. - Company Strategy & Performance Analysis
AT&T is the leading operator across the markets and segments it operates in. The company is the dominant operator in the US with a mobile market share of 35% in 2016. The company also holds a strong position in Puerto Rico with a market share of 49% in 2016. Market leadership, which it has attained through the large scale of its operations, provides significant economies of scale and bargaining power. Other advantages of its large customer base and strong brand recognition are the high penetration of new products and significant cross selling opportunities.
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AT&T occupies second position in the US mobile telecom market
AT&T maintains a strong market position in the US. The company offers a comprehensive range of wireless and wireline services. The company has a robust presence in the US mobile services market, accounting for a 32% market share. The company’s focus on offering new services has allowed it to maintain its dominance in the market. For instance, the company expanded its portfolio of smart solutions such as FlexWare, Network on Demand and NetBond.
Mobile subscriptions continues to witness robust growth
The company’s mobile subscriptions witnessed robust growth over the last four years. Mobile subscribers in the US stood at 135.9 million in 2016, in comparison to 107.0 million in 2012, growing at a CAGR of 6.2% during 2012-2016. The positive growth is attributed to the increase in prepaid and postpaid subscriptions. The increase in postpaid subscriptions reflects new additions to its customer base, as well as migrations in its consumer mobility segment, which provides wireless service to consumer wholesale and resale subscribers.
Robust growth in data ARPS
The company reported strong growth in data ARPS across the US, Puerto Rico and Mexico. The US reported a higher data ARPS of US$25.9 per month in 2016 in comparison to US$14.5 per month in 2012, growing at a CAGR of 15.6% during 2012-2016. Puerto Rico’s data ARPS stood at US$12.1 per month in 2016, growing at a CAGR of 6.8% in the same period. The increase in demand for data, coupled with the rise in the use of mobile applications and OTT services, has led to an increase in data ARPS. AT&T Mexico’s robust YoY growth of 30.8% in data ARPS is attributed to the launch of its bundled data services.
AT&T aims to become the leading player in connectivity and integrated solutions
The company is looking to leverage its premier network assets to deliver integrated mobile, video and data solutions to its customers. AT&T is focusing on delivering seamless connectivity to every device and sensor across its businesses. The company has invested substantially in highly secured connectivity and ultra-fast fiber networks.
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