Newsletter
AT&T Mobility seems to have a greatly envisioned future thanks to several long-term investments they have recently made. As a result, the company will face an unprecedented growth and overall expansion like never seen before. This growth will mainly focus on the Internet of Things and a major increase in its overall size, after the purchase of two Mexican carriers. According to analyst, Joseph Mastrogiovanni, these recent moves by AT&T will end up completely paying off and will become the base for an increase on the prominence of the company. The Wall Street firm, Credit Suisse, is known for releasing spot-on reports about the global market’s behavior and the firm currently believes AT&T is taking steps towards the right direction.
Mastrogiovanni, analyst at Credit Suisse, reported during a meeting with AT&T’s CEO, John Stephens, that Mexico is “an attractive opportunity for AT&T given regulatory pressure on the incumbent operator, the current three player dynamic, AT&T’s spectrum position and the economic outlook for the country”, which means that the current status of Mexico’s dominant carriers is beneficial for AT&T. A new major carrier entering Mexico’s market would shift the current dominance that Carlos Slim-owned Telcel has. AT&T finalized negotiations for the acquisition of Iusacell and Nextel Mexico a few months ago and since then, AT&T has made several statements, one of which included the company’s goal to become Mexico’s biggest carrier in just 10 years. “While AT&T will admittedly have to invest to build out a substantial network, the investment should be reasonable relative to AT&T’s size”. In his report, Mastrogiovanni emphasized on how the carrier will have to first make some big sacrifices for the company’s investments to be profitable.
AT&T has also spent several years working closely with car manufacturers such as General Motors, Nissan, Audi, Tesla, BMW, Subaru, Ford Motor Co. and Volvo, to become a big part of the intelligent car market. The carrier’s growing interest in the connected car has become more apparent with these partnerships, even if at the moment it is not providing AT&T with a stable source of income. Connected cars will become a big part of society in a near future, and when they do, AT&T’s investments are likely to finally pay off.