AT&T CEO says Wall Street critics are wrong about the company’s promotions

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,“We’re really getting customers in a lot of different places and in a lot of different ways, and there’s no one answer. And I know people want to keep going back and saying, OK, It’s a high level of publicity that’s doing it. And it’s really not right.”,

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— AT&T CEO John Stankey

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AT&T Chief Executive John Stankey hit back at critics who say AT&T Inc.’s recent growth has been fueled by heavy promotional activity, telling investors at Monday’s conference that many are behind the company’s customer momentum. are factors.

The telecom giant added 813,000 postpaid phone customers in its latest quarter, surpassing rivals Verizon Communications Inc. More than VZ.
and T-Mobile US Inc. tmus,
joint. The company has garnered similar-sized customers for several quarters, with some analysts attributing traction to the company’s promotional strategy — AT&T.
Ltd. has focused on not only adding new customers but has also offered comparable deals to existing customers so that they stay with the company.

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Stankey said Monday that AT&T’s focus on consumer wireless deals misunderstands the broader story of the company’s growth.

“Our stock has changed significantly in some parts of the market,” Stankey said Monday at the Goldman Sachs conference, “including public sector trading.” AT&T’s public-sector momentum “is not based on promotion” but rather invests in improving the company’s own public-security network that allows AT&T to “enter a segment in which we previously were less than

Additionally, AT&T “sees the same dynamic move in the upper end and middle part of the trading market where our stock performance has improved,” he said, according to a transcript of the presentation provided by Sentio.

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While Goldman Sachs analyst Brett Feldman acknowledged Stankey’s remarks about the more business-oriented aspects of AT&T’s business that are not heavily hyped, he also noted that AT&T’s consumer proposition is clearly The industry has seen more customer growth over the years than population expansion.

AT&T’s promotional strategy is working, Feldman said, but it leaves investors wondering what will happen to the industry and the company when consumer demand for the wireless sector slows.

Stankey said the consumer aspect of AT&T’s promotional strategy is also misinterpreted. While the device subsidy is “one element” of the cost that AT&T charges to acquire or retain a customer, he said the company has also adopted a more understandable model for customers that allows the company to “communicate the message”. Lets spend less money doing it.”

“We’re getting probably the best yields in our promotional advertising we’ve ever had, but we’re not spending nearly at the levels we’ve historically spent, and I’ll tell you, we’re not spending at the top industry right now,” he said.

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Stankey offered that the low-growth scenario might not necessarily be worse for the company.

“I will tell you that our equation hangs together when you look at the overall view of it,” he said.

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