Page 28 - SAMENA Trends - January 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

AT&T Looks to Fiber for Revenue Growth

AT&T’s recent fiber build-out may have been driven by a deal the just under $7.0 billion for legacy voice and data services. “Over
company made with the federal government, but now management 60% of our revenue on business wireline as strategic services
expects AT&T Fiber to be a solid contributor to revenue growth. is next-generation,” Stephens said. “So, we’re getting through
“I think we’ll see higher IP broadband, fiber-based broadband that maturity process. We’re getting through that transformation
revenues,” AT&T CFO John Stephens told investors at the Citi process pretty well and holding on to margins. And so as that
2020 conference this week. Wall Street is paying close attention continues to grow, we’ll continue to be healthier and healthier.”
to AT&T’s comments about revenue, since the company has Part of that growth, however, is likely to be a shift in the asset
projected anemic revenue growth in the coming years, and some mix. AT&T is currently undertaking a comprehensive review of its
analysts think that even these modest forecasts are probably assets and businesses under the direction of Bill Morrow, former
unachievable. Stephens also highlighted the synergies his CEO of Clearwire and Australia’s National Broadband Network.
company expects to realize by offering entertainment packages Last year, Stankey predicted that the wireline business would
to customers whose homes are served by AT&T Fiber. The be targeted for “rationalization.” “When you think about product
company is banking on its planned May launch of HBO Max to rationalization in the wireline business that means geographic
boost subscriber numbers and revenues for its entertainment and footprint rationalization, and there’s a huge opportunity for us
group. Stephens said AT&T’s fiber-to-the-home customers “will to look at our wireline business and how our customers are laid
be able to bundle HBO Max and any other streaming services that out and start thinking about what we do to take out layers of cost
someone might have.” His remarks echoed those made late last based on geography we serve and products that we support that
year by John Stankey, AT&T president, COO and CEO of Warner maybe have run their course in a fairly mature business moving
Media, at the UBS Global TMT Conference. “We -- there’s no reason forward,” Stankey said, adding that labor was “clearly an important
why -- where we’ve deployed fiber that we can’t be an equal share part” of the rationalization picture. AT&T already announced
player to our competitor there,” Stankey said. “We have a lot of plans to cut hundreds of jobs after it met the requirements set
room to grow there, and we’re going to ride that aggressively and by the FCC for its fiber build-out. The Communication Workers of
get the benefit out of that extensive investment we’ve made.” Last America said notifications of the job cuts, expected to total about
year, AT&T surpassed the 12.5 million customer locations that the 1,800, took place last summer.
FCC required it to serve with fiber as a condition of the company’s
DirecTV acquisition. AT&T Fiber now passes more than 14 million
locations, and Stephens said this week that he foresees “great
joint utilization between not only broadband-to-the-home, but
also network backbone for our wireless network.” AT&T is working
hard to make sure that growth in fiber-to-the-home is not offset by
declines in its business wireline unit. The company’s legacy voice
and data business has been in decline, but much of that decline
has been offset by growth in strategic and managed services for
business wireline customers. Strategic and managed services
revenue was $11.5 billion for the first nine months of 2019, versus

Arjun A. Sethi Named Kearney’s New Head of

Asia Pacific

Kearney, a leading global management assignments as a firm,” said Alex Liu,
consulting firm, has named Arjun A. Sethi Managing Partner and Chairman at
as the Regional Chair (elect) & new Head Kearney. “Arjun’s leadership and expertise
of Asia Pacific effective May 1, 2020. Arjun in the global digital and analytics space will
will oversee the business strategy and accelerate the significant client expansion
operations of Kearney’s business across we envision across the entire region.” Arjun
Australia and New Zealand, Greater China, will succeed Saurine Doshi, who has served
India, Japan and Southeast Asia. “Our Asia in the position for six years and will rotate
Pacific practice has been vibrant in recent into a new role leading the firm’s global
years—and the source of some our most services and innovation practices. Over the
significant and innovative transformation past six years, Kearney has made significant

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