Pacific Telesis Group

Through its subsidiaries, affiliates, and operating companies, holding company AT&T is the industry-leading provider of wireline voice communications services in the US. Customers use AT&T-branded telephone, Internet, and VoIP services; it also sells digital TV under the U-verse brand. Key markets include California, Illinois, and Texas. The company's corporate, government, and public sector clients use its conferencing, managed network, and wholesale communications services. Subsidiary AT&T Mobility is the second-largest US mobile carrier by both sales and subscriptions (after Verizon Wireless). It provides mobile voice and data services to more than 105 million subscribers.

Geographic Reach

The company has spectrum licenses in all 50 US states, Puerto Rico, and Washington, DC. Its wireless services and mobile broadband services are available in more than 145 countries around the world.


While AT&T's wireline business is only slightly smaller than its wireless arm in terms of sales, it has not contributed to the company's growth in the way that the mobile segment has in recent years. Its landline data services are comprised of switched and dedicated network transport, dial-up and broadband Internet access, network integration, data equipment sales, and converged video communications.

Sales and Marketing

AT&T has pushed its mobile services through increased advertising and marketing efforts that tout the benefits of the mobile Internet. A key component of this was an exclusive agreement with Apple to carry the iPhone in the US from the time of its debut in the summer of 2007 until early 2011 when top rival Verizon also began to offer the device. AT&T reaped significant rewards from this partnership, which helped drive the growth and profits of its wireless business.

Financial Performance

AT&T revenue increased by 1% in fiscal 2012 compared to fiscal 2012 due to growth in wireless service and equipment revenues and higher wireline data revenues from U-verse and strategic business services. Revenue growth continues to be tempered by declines in voice revenues. During fiscal 2012 total switched access lines decreased 13.2%.

The company reported net income of $7.26 billion in fiscal 2012, which was an increase compared to the previous year's $3.9 billion in net income, due to decreased operating expenses and increased net sales.


To keep up with the changing landscape of TV watching, in 2014 AT&T formed a joint venture with The Chernin Group, a media investment firm led by Peter Chernin. Named Otter Media, the new company is tasked with acquiring, investing in and launching over-the-top (OTT) video services for AT&T. (OTT refers to media streamed over the Internet where the ISP, such as AT&T, is only responsible for transmitting the data. It's no longer managing and scheduling the programming, like it does with AT&T U-Verse.) Otter Media began with $500 million in funding.

AT&T's efforts to bolster its wireline business include a $4.4 billion initiative to build a fiber-optic network, using fiber-to-the-home (FTTH) or fiber-to-the-premises (FTTP) technology, which will enable the company to offer IP-based video, broadband Internet, and VoIP services over a single line. Known as U-verse, the service is used by nearly 4 million high-definition TV subscribers, and is intended to increase the appeal of AT&T's bundled communications and video packages over major cable network operators that also offer communications services.

In 2012 AT&T sold a majority stake in its advertising and interactive business units to  Cerberus Capital Management, retaining a 47% share for itself in the re-named YP Holdings LLC. The more than $3 billion dollar business -- which includes print telephone directories,, an advertising network, and a mobile app -- garnered AT&T $750 million in cash along with its minority stake, as well as a $200 million note.

Mergers and Acquisitions

AT&T has been using acquisitions to build its mobile data capabilities and expand its service area and subscriber numbers. A key component of this growth strategy had been the plan to buy smaller rival T-Mobile USA from Deutsche Telekom in a transaction valued at nearly $40 billion in cash and stock. The deal fell apart amid strong government opposition in 2012. AT&T had to pay Deutsche Telekom a break-up fee valued at about $6 billion, including $3 billion in cash, along with wireless spectrum licenses and a national roaming agreement worth another $3 billion.

A less dramatic effort to increase the capacity of its network involved the purchase of wireless spectrum licenses from QUALCOMM. In late 2011 AT&T paid about $1.93 billion to QUALCOMM to secure additional capacity necessary to enable the expansion of its 4G network. The spectrum rights cover about 70 million people in the key markets of  Boston, Los Angeles, New York, Philadelphia, and San Francisco, in addition to other areas nationwide. QUALCOMM had used the spectrum for its FLO TV service before it was taken offline early that year.

In early 2013 AT&T picked up more spectrum via the purchase of NextWave Wireless for about $600 million, with most of that going toward outstanding debt. The spectrum includes the Wireless Communication Services (WCS) band, which AT&T hopes to enable for mobile Internet use and help support growing data usage needs. In mid-2013 AT&T agreed to purchase Leap Wireless (pre-paid wireless services via the Cricket brand) for some $1.2 billion in an effort to build its profile in the pre-paid market and expand its LTE network with Leap's unused spectrum.

In 2014 it purchased Leap Wireless (which operates under the Cricket brand) for some $1.2 billion in an effort to build its profile in the prepaid market and expand its LTE network.

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Pacific Telesis Group

175 E Houston St
San Antonio, TX 78205-2255


  • Employer Type: Unknown

Major Office Locations

  • San Antonio, TX

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