We aspire to be the most admired and valuable company in the world. Our goal is to enrich our customers' personal lives and to make their businesses more successful by bringing to market exciting and useful communications services, building shareowner value in the process. (1)
Connect people with their world, everywhere they live and work, and do it better than anyone else. (2)
5.Strong Growth in Free Cash Flow
The earnings growth of the wireless unit is expected to reach mid-teens partially attributed to the acquisition of Dobson Communications. By acquiring Dobson, AT&T expects to possibly gain 13 million customers in 17 states. (3)Also, a growing wireless subscriber base and wireless data revenues propelled by the exclusive iPhone contribute to earnings expectations. The Operating Income Before Depreciation and Amortization is projected to be in the low to mid 40% scope. Enterprise unit
The Enterprise unit is AT&T’s division that provides such services as IP Virtual Private Network, Voice over IP, Local and Long Distance Voice, Data and Managed Data Solutions, and Local Search among others. The unit saw a 3.9% revenue decrease following the BellSouth merger but earnings recovered by third quarter and are now projected to continue to increase growth during 2008. AT&T has been investing in Ingenio, a pay per call solution provider, and expects to see high growth from its yellowpages.com service. (4)
Capital expenditure is expected to remain consistent in the mid teens. Wireless and wired networks are continually being upgraded in an effort to support the launch of U-verse. U-verse is projected to have a subscriber clientele of over 1 million customers by the end of 2008. U-verse is expected to launch in what was formerly the Bellsouth South East sector, using a controlled launch in Atlanta. The launch in the South East realm will bring to the U-verse populated states total to 22, to reach a clientele of 30 million units by the end of 2010. Satellite Services
AT&T is expecting to boost profits in its satellite service arena by partnering with DirecTV, the U.S.’s largest satellite television provider. Once AT&T’s alliance with Dish Network ends on January 31, 2009, DirecTV will begin offering customers a dual-branded package of video, home phone, wireless phone and Internet service from Feb 1 2009. New customers will receive a discount on services for bundling other AT&T services. This partnership contributes to the merger collaborations expectations of reaching more than $7 billion by 2010. (4) Strong Growth in Free Cash Flow
AT&T is confident that its ramping revenue growth combined with continuous cost improvements and share repurchases give it the ability to deliver sustained double-digit growth in adjusted earnings per share and strong growth in free cash flow in 2008 and on an ongoing basis.
The board also approved a new authorization for the repurchase of 400 million shares, which represents approximately 6.6 percent of AT&T's shares outstanding as of Dec. 7, 2007. This replaces AT&T's current repurchase authorization, under which the company had repurchased more than $13 billion of its shares through Dec. 7, 2007. Based on current market conditions and the company's outlook, AT&T expects to complete the repurchases available in the new authorization by the end of 2009. (5)
1.Build Largest Wireless Business in the US
2.Expand Enterprise Business
3.Expand Broadband Access
4.Build An All-Internet Protocol Infrastructure
Build Largest Wireless Business in the US
A little more than three years ago, Cingular Wireless, in which AT&T owned a majority stake, acquired AT&T Wireless. That acquisition enabled...