How Is AT&T’s Revenue Mix Expected To Change Over The Next 5 Years?

May 19th, 2016 by Trefis Team
+13.48%
Upside
16.12
Market
18.29
Trefis
T: AT&T logo
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AT&T

T_mix_2015-20

  • We expect AT&T’s Business Solutions division to grow, driven by higher wireless ARPU and moderate wireless subscriber growth. However, we expect the Voice, Data and Strategic Services revenues to decline amid attrition of legacy fixed line customers.
  • We expect Entertainment to account for a smaller portion of revenue going forward, on account of saturation in the U.S. pay TV market and lower residential fixed line and DSL revenues.
  • The Consumer Mobility division should improve its revenue contribution, driven by higher data consumption and a lower mix of low-value feature phone customers.
  • International business should expand, driven by Mexican wireless operations, which should benefit from regulatory tailwinds and AT&T’s increasing investments in expanding its high-speed data network across the country.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for AT&T