Analyst: AT&T Quarterly Still Strong, Signs Of Weakness

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iPhone Going To Verizon Has Not Impacted Them Yet

Atlanta, GA, April 20, 2011 — Comment from the desk of Jeff Kagan

Wireless, Telecom and HealthTech Analyst

~ RESEARCH NOTE ~

ONE: AT&T did not have a large number of customers leaving them for Verizon. That is good for the company so far. Of course Verizon just got the iPhone in the middle of the seasons. The next question is will AT&T’s luck hold out after the next version is released later this year. If so then they can dodge the bullet everyone is watching.

TWO: AT&T has strong numbers, but there is real concern with some of them. New customers have fallen 90%. That’s just incredible. That means their growth is coming from current users switching devices and using more wireless data services. Expect to see more marketing around these wireless data services like the iPhone and Android and other smart phones.

THREE: This new reality shows the industry is still growing, in segments, but serious changes are coming once again. It seems every 5 years the industry competely changes. We are still in the smart phone space, but I expect to see the carriers moving more quickly into other spaces like tablet, e-readers and the health care space. They will work with companies in the new wireless health, mHealth and eHealth sectors. This is an area they have been struggling to enter.

FOUR: AT&T Mobility is still growing, however the wireline side of the business is struggling. They are losing business quarter after quarter. On one hand that is expected, but on the other hand it is still disturbing to see. Their Uverse business continues to grow, but not fast enough to calm fears of losses in the traditional phone business.

Generally speaking AT&T is still a strong and growing company, but the industry is continually fast changing. While segments slow down the company has to keep hitting on all the other cylinders. Those other cylinders are where some of the gray area is.

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These comments may be quoted in news stories.

Comment from Jeff Kagan, Atlanta based Industry analyst, columnist, author and consultant.

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Jeff KAGAN

- Wireless, Telecom and HealthTech Analyst, Author, Consultant

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