AT&T's strategy of bundling fiber and wireless services is attracting subscribers but eroding the profitability of its fiber network. Fiber average revenue per user fell 1.3% year-over-year, and management expects continued pressure from discounted converged customer pricing. The company's net margin of 16.9% sits well above its three-year average of 10.8%, raising concerns that peak profitability may be vulnerable if fiber pricing power weakens further. The stock has declined 9.0% over the past year while the S&P 500 gained 17.5%, reflecting market skepticism about the sustainability of per-customer profits.
AT&T Inc.Fiber ARPU declined 1.3% YoY due to discounted bundled pricing, pressuring profitability.
Comcast Corp
Lumen Technologies Inc