At&T Company Analysis
Mission Statement
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)
Vision Statement
Connect people with their world, everywhere they live and work, and do it better than anyone else. (2)
Corporate Objectives
Financial Objectives
1. Wireless Unit
2. Enterprise unit
3. Capital Expenditure
4. Satellite Services
5. Strong Growth in Free Cash Flow
6. Share Repurchase
Wireless Unit
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
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
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)
Vision Statement
Connect people with their world, everywhere they live and work, and do it better than anyone else. (2)
Corporate Objectives
Financial Objectives
1. Wireless Unit
2. Enterprise unit
3. Capital Expenditure
4. Satellite Services
5. Strong Growth in Free Cash Flow
6. Share Repurchase
Wireless Unit
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
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
Cited: October 5, 2008.] http://www.appleinsider.com/articles/08/08/26/new_blackberry_suffering_same_3g_connection_drops_as_iphone.html.