AT&T (T) Citi's 2024 Global TMT Conference summary

Industry environment and growth strategy

• Wireless industry described as healthy and normalizing, with steady customer-focused growth since late 2020.

• Low churn rates achieved by rewarding customer loyalty and targeting under-indexed segments, such as Hispanic audiences and small businesses.

• Growth opportunities identified in converged wireless and fiber households, and among price-sensitive customers.

• Pricing strategy aligns value with customer perception, emphasizing transparency and choice, resulting in lower-than-expected churn even as prices rise.

• ARPU expected to see moderate growth, supported by new products and add-ons like device insurance and speed upgrades.

Device upgrade trends and customer behavior

• Customers are holding onto devices longer, with average replacement cycles now at 45 months.

• Device upgrade behavior varies by customer segment, influenced by network evolution, device cost, insurance, and innovation.

• AI-capable phones attract a niche audience, but not a major upgrade driver yet.

• Upgrade incentives focus on organic wireless service revenue growth rather than market share grabs.

• Strategy remains disciplined, prioritizing profitable growth and customer needs.

Churn management and customer retention

• Multi-year journey to reduce churn, highlighted by initiatives like Best Deals for Everyone and improved customer operations.

• Retention driven by ongoing improvements in pricing, offers, distribution, and customer care.

• Cohort management focuses on building durable relationships and consistent engagement throughout contract cycles.