Thread regarding AT&T layoffs

U-Verse to be phased out by May 30th


AT&T (T) to Shut Down U-Verse and Shift Users to DIRECTV


Zacks Equity Research

ZacksMarch 29, 2017

Per a recent FierceCable report, U.S. telecom behemoth AT&T Inc. T is planning to completely phase out its long-standing U-verse brand by May 30. The brand consists of fiber-based triple-play video (TV), voice (telephony) and high-speed broadband (Internet) offerings. This move is in line with AT&T’s strategy to discontinue the service. The service has faced blackout in 23 states since Mar 15.

Accordingly, AT&T plans to shift some U-verse customers to satellite TV service provider DIRECTV, while some will be transferred to its over the top (OTT) online streaming service, DirecTV Now. By venturing into the OTT space, AT&T joined the likes of DISH Network Corp’s DISH Internet TV service - Sling TV and Sony Corporation’s SNE Playstation Vue, respectively.

Notably, AT&T earned $13,206 million revenue in the Entertainment Group Segment, up 1.6% year over year (post the DIRECTV acquisition). Of the total, Video entertainment revenues were $9,567 million, up 3.5%. As of Dec 31, 2016, total Satellite connections tallied 21,012,000 and U-verse connections were 4,253,000. AT&T lost 262,000 U-verse customers but gained 235,000 satellite TV customers.This proves the company’s strategic shift from its U-verse customers to the DIRECTV brand to be a positive one. In fact, this move bodes well with the weakening performing of U-verse brand compared to the improved business of DIRECTV. Moving ahead, this in turn is expected to free up very important bandwidth on its fiber-optic network, which AT&T can utilize to offer higher data transmission speeds to its high-speed broadband users.

The company officials have already started informing customers about the shutdown of the service. Moreover, the U-verse multi-screen app is also likely to get removed from Microsoft Corporation’s MSFT Xbox One and Windows mobile platforms.

However, the final call is yet to be confirmed by the company.

Over the past three months, shares of AT&T lost 2.6% as compared with the Zacks categorized Wireless National industry's 4.3% decline. This was mainly led by the company's operations in a saturated wireless market, where spectrum crunch is a major concern. Additionally, persistent losses in access lines, mounting operating expenses, losses incurred from promotional offers, stringent regulatory norms and union issues act as major dampeners for the company’s growth prospects.

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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IPTV won't overlap U-verse FootPrint, the fact that U-verse video will be transitioned, does not imply that the Broadband and voice won't be offered, it is just a shift in maintenance costs from the operational perspective, of-course there will be job cuts, with a reduction on video trouble tickets, fewer technicians will be employed.

As far as who will get to keep those jobs, CWA union workers rule by seniority, obviously the most technical talented millennials will not stand a chance when competing with older workers for those jobs when they are displaced from their legacy supported products

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that's not what the article says. I'm sure soon they'll stop selling uverse iptv and sell only directv or directv now as a bundle with uverse internet and phone.

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Uverse is 2 expensive to maintain, the less network tickets,= - jobs+ layoffs= big bonus payday for randy and cronies

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Listen they aren't going to shut down the U-verse network. The name will prob go away and they may shut down the website but IPTV won't be going away any time soon.

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The uverse techs do directv installs along with the internet and voip and repairs nothing much has changed except they install dishes on houses now too.

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Although it's not specified in the article it sounds like they'll be shifting the TV part of u-verse to either DTV or DTV now, which will free up capacity for faster internet service. This is only the beginning of the end for the u-verse brand with the company heavily investing in AirGig.

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I have FTTP fiber to the Uverse tv works great! I don't want a big ugly dish hanging off my house, same as a lot of people! If they cut Uverse tv I will just start streaming on my roku like a growing amount of people are doing! No direct tv for me thanks

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Where are the U- verse techs going? Have they become obsolete? Just like the services technicians, OPTss, wire and Prem Techs?

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