AT&T Inc T CEO John Stankey saw inflation prompting him to raise prices for some core services while it continues to cut costs after getting out of the media business, the Wall Street Journal reports.
Stankey saw a potential economic downturn, making its shares more attractive to investors looking for a business that performs well during such a slowdown.
The wireless and broadband company completed the planned separation of its film-and-TV empire into Warner Bros Discovery.
WSJ noes that AT&T looked to use most of the $39 billion cash from its media sale to help pay down debt.
AT&T plans to increase investment this year and next year to expand its 5G wireless network before hemming in capital expenditures in 2024 and quickly adding fiber-optic broadband customers in the coming years.
AT&T also plans to halve its network of copper telephone lines by 2025. Crews would replace some lost revenue by building new high-speed fiber-optic cables. AT&T wants to shut down old landlines where fiber upgrades proved cost-ineffective, WSJ wrote.
Inflation raised the cost of everything from labor to router parts, putting more pressure on its bottom line. However, the average rate that U.S. cellphone carriers charge for wireless service has barely budged.
AT&T has been adding and keeping wireless customers for more than a year, partly by offering aggressive promotions for new smartphones.
Price Action: T shares traded at $19.26 on the last check Monday.
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