One year after the launch of its Project VIP network upgrade program, the network is hitting “best-in-class” performance levels for reliability, speed and wireless network coverage, said Randall Stephenson, +AT&T ‘s Chairman, CEO and President, speaking at the Goldman Sachs Communacopia Conference.
Some notes from the presentation:
- The consumer fixed line business is growing steadily at 2-3% and will soon hit 10 million broadband IP subscribers.
- U-verse is now a $1 billion per month revenue stream and it’s growing nearly 30% year-over-year.
- Small business IP broadband is also growing well.
- In NYC, more that half of mobile traffic is already on the LTE network.
- AT&T is seeing great sales growth for tablets.
- Strategic business services is now an $8 billion per year revenue stream.
- Digital Life, which is automating the home and providing security services, has seen the use of video cameras to be the No.1 attachment.
- The Connected Car is a key area of interest and relationships are being signed by the major manufacturers.
- AT&T is close to signing a deal for the sale of tower assets. The deal could include about 10,000 towers out of about 70,000 towers in its portfolio. The sale is an opportunity to monetize some assets, much like selling the company’s administrative real estate.
- AT&T will continue to Cricket brand for pre-paid mobile service.
- AT&T’s pension plans are close to being fully funded.
- The video opportunity is significant. Over 50% of traffic on the IP network is now video. OTT is a key player for AT&T too. AT&T’s network focus is now about delivering video.
- AT&T is preparing to launch an LTE-Broadcast service that will use 700 MHz licenses that were acquired from Qualcomm. No timeline was provided.
- In 2012, AT&T acquired 11 of Qualcomm’s D and E Block licenses in the Lower 700 MHz band for $1.9 billion. Qualcomm originally planned to use this spectrum for its Media FLO mobile TV service, which was launched in 2009 and then cancelled in early 2011 after failing to catch on in the market.
