Category Archives for "Managed Services News"

Eric Purcell

The scores of headlines generated by the minor dustup between the Federal Aviation Administration (FAA) and mobile carriers late last year rapidly came and went.

Apparently with few people noticing, most of the news in recent months regarding the rollout of C-band 5G has been positive — especially for the enterprise market.

Verizon told investors in March that managers expect private 5G networks, enterprise solutions and mobile edge computing (MEC) to represent a potentially big payday by the year 2025. The telecommunications company illustrated the expected growth with a slide that showed how private networks, enterprise solutions and MEC may be worth $30 billion.

T-Mobile, traditionally not one of the top players in enterprise, now has its sights on competing for customers in edge computing and private networks, according to comments made earlier this year by CFO Peter Osvaldik.

It’s no surprise that T-Mobile would vie for a share of the enterprise market and leverage all those mid-band 2.5-GHz spectrum licenses obtained in the 2020 Sprint acquisition. Additionally, T-Mobile supplemented those licenses with the purchase of some of the much sought-after mid-band spectrum auctioned off by the Federal Communications Commission (FCC) last year.

T-Mobile certainly wasn’t the only bidder. AT&T and Verizon dominated the FCC auction by plunking down enormous sums to acquire 3.7-3.98 GHz spectrum licenses. Still, the group that stands to benefit much from this white-hot competitive environment is enterprise customers. Increased competition among vendors typically produces more choice, lower prices and better service.

What’s In It for Channel Partners?

Though 5G isn’t new, coupling it to the C-band improves performance. C-Band refers to the radio airwaves operating in a midband spectrum (between 2- and 7-GHz). C-band provides the unique combination of wider coverage and greater bandwidth, making it superior to 4G and LTE.

Low-spectrum frequencies offer better propagation — meaning they can go through walls and the like. Higher-band spectrum equips IT managers with more capacity and is better for delivering bandwidth-intensive applications, such as video and virtual reality.

For IT managers who have higher bandwidth needs and hope to one day replace their fiber or wirelines, C-band 5G places them one giant leap closer. They don’t call C-band the goldilocks spectrum for nothing. For scores of business applications, C-band is just right.

C-band 5G offers lower lag time, enabling self-driving cars or surgical-tool arms with the low latency and high bandwidth necessary to process data and respond more rapidly, presumably leading to greater safety. Robotic arms will be more precise and drone aircraft may not need line-of-sight operators anymore. Two of the country’s largest retail pharmacies have already begun leveraging C-band 5G to help ensure the performance of point-of-sale terminals.

As the frontrunners in mobile networks continue to expand their offering of C-band 5G, now is a good time to become familiar with the technology, the benefits and to distinguish fact from fiction about what’s been written.

Why The C-Band Rollout Dragged on

For a variety of reasons, the FAA caused the most notable delay.

Last fall, the agency issued an 11^th-hour claim that airplane altimeters were negatively impacted by 5G transmissions. As many have pointed out, numerous other nations have …

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.