AT&T Inc (NYSE:T) shares are under pressure on Wednesday. Oppenheimer issued a fresh downgrade, and the company also announced a major simplification of its home internet pricing. Here’s what you should know.
- AT&T stock is feeling bearish pressure. Why is T stock dropping?
Oppenheimer Downgrade And Competitive Concerns
Oppenheimer cut its rating on AT&T to Perform from Outperform, warning that the company faces growing competitive risk from satellite providers that use low Earth orbit constellations, according to Investing.com. The firm said broadband subscriber growth and eventually mobile services could be pressured as satellite networks expand.
What Oppenheimer Is Worried About
The firm said the industry underestimated the threat from fixed wireless access in the past and is now underestimating the threat from satellite providers in the same way. Oppenheimer believes AT&T’s plan to build 7 million new fiber passings this year and 5 million annually through 2030 may not deliver the penetration rates the company expects.
The firm said AT&T may stop at 50 million homes rather than reaching more than 60 million locations.
AT&T’s New Fiber Plans
AT&T announced a streamlined fiber lineup that launches June 7. Customers will be able to choose from four speed tiers: 300 Mbps, 500 Mbps, 1 GIG and 5 GIG. The company said the goal is to make pricing easier to understand and to give customers more value. Customers who combine AT&T wireless and home internet can save up to $420 a year, with bundled fiber starting at $35 per month.
The new entry level fiber plan is three times faster than before. Customers who bundle services also receive Internet Backup at no extra cost. The 5 GIG plan includes All‑Fi Pro, which provides whole home coverage, advanced security, adaptive Wi‑Fi and upgraded equipment.
T Shares Are Falling
T Price Action: AT&T shares were down 4.18% at $23.61 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Jason Taylor AG/Shutterstock
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