Saturday, September 22, 2012

AT&T may invest in rural lines rather than divest, CEO says

AT&T may invest in rural lines rather than divest, CEO says: AT&T has said it would consider selling its rural access line unit, but Mr. Stephenson hinted earlier this year that such a sale could prove complex. The difficulty comes from the lines spanning multiple states and therefore needing several regulatory approvals that would likely take significant time.

On Wednesday, he said finding an internal solution for the business would avoid having to go through that process.
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There is also a simple business fact at play.  Who wants to buy obsolete copper cable plant?

He also noted that AT&T's wireless service could ultimately prove to be a solution for fixed-line broadband connections in less-dense markets as its next-generation LTE network rolls out.

"LTE can become a fixed-line replacement or even better than what you get from fixed line," he said.
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If Mr. Stephenson is talking about first generation ADSL, he would be right.  But wireless cannot equal or exceed wireline fiber to the premise.

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