The good news is the wireless industry looks like it is finally getting back to its core business and focused on real growth. However, some service providers are doing a better job compared to others. So, let’s pull the camera back and take a closer look at who is doing the best, at the competitors and in fact the entire wireless industry. Let’s see where they stand and the new directions they are now heading.
Pre-paid is showing strong growth. There are all sorts of service providers from Verizon, T-Mobile and AT&T, to the cable television companies like Xfinity Mobile, Spectrum Mobile and Optimum Mobile from Altice. Plus, there are so many other pre-paid services like Pure Talk, Tracfone, Cricket and more.
Post-paid, while showing the same growth, is still doing strong business. These services are offered by wireless carriers with networks like Verizon, T-Mobile US, AT&T, US Cellular, C-Spire Wireless and others.
Wireless carriers getting back to basics with 5G wireless
Individual wireless companies are performing differently. They have all taken different paths over the last several years. Those who made mistakes are starting to focus on repairing the damage they incurred and start their growth engines again.
The tide could finally be turning for AT&T. They just issued their quarterly numbers and for the first time in a long-time they don’t stink.
So, congratulations to CEO John Stankey and the entire organization for these early signs of what may turn into a real and hopefully long-lasting revitalization and recovery of Ma Bell. If so, that would be good news.
CEO John Stankey getting AT&T back on right path
AT&T was in deep trouble not too long ago. The path they took in recent years to find new growth was the wrong direction. Their move into entertainment with WarnerMedia, Warner Brothers Studio, CNN, DirecTV and the like were the wrong direction.
Thank goodness they have spent the last year or two getting back to their core, which is 5G wireless, telecom, fiber and Internet.
The most recent numbers they just released show they may have started their growth engines once again. They reported 691,000 postpaid wireless phone net adds for 1Q22.
That’s a good start on a long come-back journey.
AT&T, Verizon, T-Mobile US wireless adds are mixed
At the same time the numbers Verizon recently released showed weakness. They reported 36,000 net adds for 1Q22. While this is an improvement over one year ago performance, it’s much slower than fourth quarter numbers and much weaker than both AT&T and T-Mobile US.
T-Mobile US will release their numbers in coming days. Analysts are expecting to see strong growth continue around 500,000 postpaid net adds.
As you can see, while all wireless carriers are growing, there is a stark difference in their performance.
Investors asking about differences between Verizon, T-Mobile US, AT&T
So, what’s happening in the wireless industry that is causing these changes? And what is coming next in the industry?
These are the questions investors, customers and workers are asking right now.
All wireless players have had a colorful history of ups and downs over the last several decades, and I have watched them all.
First, there was Ma Bell offering local and long distance. Then it was broken up into AT&T and seven Baby Bells. Then wireless, the internet and pay TV entered the picture.
Next, the acquisition wave occurred. The long-distance giants like AT&T, MCI and Sprint ultimately collapsed. AT&T was acquired by SBC and the company changed its name to AT&T going forward. MCI was acquired by Verizon. Sprint changed from long-distance to wireless and was recently acquired by T-Mobile.
The Baby Bells started to merge. Example, SBC also acquired BellSouth and Cingular. So, the industry was full of new names and new companies. Every region throughout the United States changed.
Comcast Xfinity, Charter Spectrum, Altice Optimum
Today, there are fewer and larger companies like AT&T, Verizon and T-Mobile US in wireless and telecommunications. Wire line they still stay within their territories.
The cable TV giants like Comcast Xfinity, Charter Spectrum and Altice or Optimum Mobile stick within their footprints.
However, after all the acquisitions we have seen in the last few decades their footprints are larger than ever. They offer pay TV, internet and wireless phone service.
So, some companies are national players while others still stick to their market areas. Today’s telecommunications industry looks much different from the earlier days.
The marketplace has changed. Today, fewer and larger companies which never competed in the past like telephone and cable TV companies are head-to-head competitors.
New directions after failures for AT&T, Verizon, T-Mobile US
In order to find growth going forward several years ago, both AT&T and Verizon took some very strange new directions. AT&T acquired DirecTV and what turned into WarnerMedia with CNN and Warner Brothers Studio. Verizon acquired Yahoo and AOL.
A decade ago, T-Mobile US was asleep at the switch when the wireless industry upgraded from 2G to 3G. They missed that critical juncture and suffered for years after that.
While AT&T and Verizon may have sounded like winning ideas, in the end all three failed. Period. This is the mess they have been struggling to free themselves from.
New CEOs at AT&T, Verizon, T-Mobile US are focused on growth
Under a new CEO, Verizon shook off their mistake and started to perform better.
Under a new CEO, AT&T had a much more difficult and longer journey to shed WarnerMedia and DirecTV assets. Now they appear to be starting their recovery.
Under a new CEO, T-Mobile US started to compete and be a winner once again after a long dry spell. Now under yet another new CEO they hope to continue this new winning trend.
So, all three wireless carriers have new CEOs with a new vision of growth for their companies.
Finally, some sanity is coming back to the wireless and telecom world.
That’s a good first step. Now, these companies can once again focus on their core which is 5G wireless, telecom, Internet and more.
We’ll be keeping our eyes on them in hopes this progress will continue.
Suddenly, AT&T is growing while Verizon is struggling
Over the last few years T-Mobile US has been doing well. At the same time Verizon looked like they were getting back on track as well after dumping AOL and Yahoo!.
AT&T however was still struggling trying to shake off the echoes of Hollywood and their unfulfilled dreams. Their path to freedom took longer to unravel.
However, with the most recent numbers that were just made public, it looks like AT&T has started their growth once again.
T-Mobile US numbers are supposed to be strong as well, just not as strong as AT&T.
And now, Verizon seems to be the one which is starting to struggle.
5G home internet and 5G wireless are different
5G wireless is the area for growth for these companies going forward. However, there are two very different 5G growth avenues. All companies are not focused on the same areas for growth.
5G home internet brings high speed Internet to the home wirelessly. This is a home-based service. This is an area we see both Verizon and T-Mobile moving full steam ahead. AT&T is less active in this space, so far.
The other area is 5G wireless service. This operates the same as the wireless service you have been using forever, anywhere in the country.
5G wireless customers are confused with conflicting marketing messages
This is the area where all three wireless carriers are active.
Each carrier tries to position themselves as the leader in this space. That’s why when each touts their 5G capabilities in comparison to their competitors.
That’s when things start to get a little confusing.
We have to ask, which 5G service are each of the carriers talking about in which marketing or advertising message? This is becoming a real marketing mess.
This is unfair to customers, investors, even workers who remain confused. All competing carriers are at war wanting to be known as the leader in their space.
Who is winning 5G wireless marketing wars, Verizon, AT&T or T-Mobile US
The result, it’s all about the marketing messages and appearing to be the best. Each carrier is shouting at the top of their lungs leaving the marketplace in chaos.
This should be fixed… but it won’t.
All that being said, the wireless industry which has been misfiring for years, finally looks like it is getting its sea legs back.
They are finally starting to show growth in the booming 5G marketplace. This is a solid growth opportunity that will be with us for years to come.
Great news for investors, customers, workers in 5G wireless
That’s great news for investors, customers and workers in the new world of 5G wireless.
This next growth wave will not last forever, but hopefully by the time it starts to fade years from now, 6G will start to make its appearance. Then we can start this whole crazy parade all over again.
Either way, I hope the nation’s wireless carriers stick to business and stay away from the kind of crazy idea.
The good news is the wireless industry looks like it is finally getting back to its core business and focused on real growth. However, some service providers are doing a better job compared to others. So, let’s pull the camera back and take a closer look at who is doing the best, at the competitors and in fact the entire wireless industry. Let’s see where they stand and the new directions they are now heading.
Pre-paid is showing strong growth. There are all sorts of service providers from Verizon, T-Mobile and AT&T, to the cable television companies like Xfinity Mobile, Spectrum Mobile and Optimum Mobile from Altice. Plus, there are so many other pre-paid services like Pure Talk, Tracfone, Cricket and more.
Post-paid, while showing the same growth, is still doing strong business. These services are offered by wireless carriers with networks like Verizon, T-Mobile US, AT&T, US Cellular, C-Spire Wireless and others.
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