Updated
Updated · Trefis · Aug 12
AT&T Wins Approval to Shut Legacy Services at 30% of Wire Centers as Stock Rises 4.8%
Updated
Updated · Trefis · Aug 12

AT&T Wins Approval to Shut Legacy Services at 30% of Wire Centers as Stock Rises 4.8%

1 articles · Updated · Trefis · Aug 12

Summary

  • AT&T said regulators approved discontinuing legacy services in more than 30% of its wire centers by late 2026, a step that helps strip out copper-network costs already scheduled for removal.
  • A couple hundred wire centers are expected to have zero customers by the end of 2026, reinforcing management’s push to shift the business toward fiber, fixed wireless and postpaid bundles.
  • AT&T shares climbed 4.8% over the past five trading days even as the S&P 500 slipped 0.1%, with five-year correlation to the index at just 0.18.
  • That independence has come with trade-offs: AT&T returned 9.0% annualized over five years with 24.6% volatility, versus the S&P 500’s 13.1% return and 17.2% volatility.
  • Operating momentum still rests on subscriber growth—Advanced Connectivity revenue rose 5.1% and EBITDA 8% in Q2 2026—while fiber ARPU fell 1.3% as convergence and acquired Lumen customers pressured pricing.

Insights

Could AT&T's aggressive $6 billion copper network shutdown backfire and alienate millions before their massive fiber expansion is even complete?
Is AT&T's market-defying stock surge a true sign of telecom dominance, or just a temporary illusion fueled by aggressive service bundling?
Will the hidden pricing drag from the Lumen acquisition quietly sabotage AT&T's bold $45 billion shareholder return masterplan?