|reply to mobbo |
Re: Really Mr. Moffett?
Actually, it is
AT&T posted a net gain in total wireless subscribers of 1.9 million, the highest first-quarter total in the companys history, to reach 87.0 million in service. First-quarter net add growth reflects continued rapid adoption of smartphones and a host of connected devices. Connected devices in service increased by 1.1 million in the quarter to reach 5.8 million, and retail postpaid net adds totaled 512,000 to reach 65.1 million.»www.att.com/Investor/Financial/E···INAL.pdf
Average monthly subscriber churn improved substantially in the first quarter, reaching the companys best-ever levels and marking AT&Ts fifth consecutive quarter of year-over-year improvement in both total and postpaid wireless churn. Postpaid churn was 1.07 percent, down from 1.15 percent in both the year-earlier quarter and the fourth quarter of 2009. Total churn was 1.30 percent, down from 1.56 percent in the first quarter of 2009 and down from 1.42 percent in the fourth quarter of 2009.
Again, those are great numbers, but check back in 3 to 5 years. After the iPhone exclusivity agreement goes away. After those 2 year iphone contracts go away. After the family share plans go away. After Android becomes the more widely accepted smartphone platform. The problem with AT&T across EVERY division (besides the horrid union labor) is the incredible short-sightedness. It would be very unwise to think those churn numbers will stay in the black unless they actually do some Verizon-style investment in their networks. And before anyone says "its not that bad", and you could argue that until the cows come home, the problem is no longer a debate point on tech-savvy forums like DSLR. Its now public perception that AT&T's network is horrid. My dad, love him to death, but he doesn't know jack shit about cell services, 3G, 4G, the internet, networks, etc... but he knows AT&T's network is one to avoid. Shaking that label is going to be AT&T's biggest problem. Every iPhone 4 review gave the phone great reviews, but the AT&T network was the downside. And when people are given an out (Android, loss of iPhone exclusivity, etc.), they will.
In 3 to 5 years, the "next big thing" will be here so we'll see. AT&T continues to invest in its network, so things will continue to improve. Yes, it faces a fair amount of negative PR these days, but things will get better. The iPhone will be around for a while and there's plenty of room for Android, BB, and the iPhone in the market. I'm not defending AT&T's (in)action, but I don't believe the death knell is sounding.