CSP Analysis Report: AT&T

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Striving to develop new Telco 2.0 services but fragmented activity built on shaky connectivity foundations


This 151-page PowerPoint style PDF report (and accompanying Excel data pack) examines the situation of AT&T as it confronts disruptive threats to its enterprise IT and backbone networking franchise, competes with the newly empowered cable industry, and prepares for price disruption in US cellular.

The report examines the structure of the US markets for cellular and for consumer wireline products, benchmark AT&T against key competitors like Verizon and Comcast, and discuss its key service offerings in detail. We highlight its strengths in VoIP, managed hosting, and M2M, and look into the impact of competitors' strength in "Happy Pipe" broadband on a carrier that has yet to deploy significant FTTH and lacks LTE coverage compared to Verizon Wireless.

The report notes that there is surprisingly strong Telco 2.0 innovation in AT&T Business Solutions, but that the company's structure and deeply Telco 1.0 culture is holding it back outside TV and M2M.

Telco 2.0 Transformation Index Benchmark AT&T

Who is it for?

The Telco 2.0 Transformation Index is the world’s first benchmark of Communications Service Providers provides benchmarking and deep analysis, the index reports are designed for: 

  • Telcos and CSP operators (including those covered, those operating in the same markets and telcos operating in other markets)

  • For vendors either partnering with or wishing to partner with these telcos

  • Investors seeking to understand where to place their bets with CSPs

Key Benefits

  • Determine the key drivers of telecoms industry transformation

  • Clarify AT&T’s performance in specific areas of transformation

  • Understand AT&T’s relative strengths and weaknesses

  • Learn from AT&T’s transformation activities

  • Prioritise transformation projects at your organisation

  • Determine how your solutions can support AT&T

  • Improve your value propositions for AT&T

  • There’s more on the benefits and packages here

Format and pricing

  • 151-page pdf document (PowerPoint format) with internal and external html links
  • 100+ charts and tables
  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us for pricing on +44 (0)207 247 5003 or [email protected]

Content overview

Introduction and Executive Summary:

Background: Defining Telco 2.0

  • The declining Telco 1.0 business model

  • The role of Telco 2.0 in bridging the digital ‘hunger gap’

  • Key Telco 2.0 skills, relationships, operational and financial models

  • The financial benefits of shifting from Telco 1.0 (Infrastructure business) to Telco 2.0 (Infrastructure + Platform and/or Product Innovation)

Telco 2.0 Transformation Index Overview

  • Methodology

  • Data sources

Executive summary

  • Summary findings

  • Pen portrait – company transformation position and key opportunities and challenges

  • SWOT

  • Strategic recommendations for accelerating Telco 2.0 transformation

Marketplace Section

Figure 1: Example output - Strategic Business Services surges ahead, but what's in it?

Example output - Strategic Business Services surges ahead, but what's in it?
  • Summary findings
  • Market economics and digital maturity
  • Telecoms market regulation by country
  • Telecoms market structure and growth by country
  • Market share position by country/segment
  • Share gain/loss analysis by country/segment
  • Strategic positioning by country/segment
  • Operating company portfolio analysis
  • Competitor analysis by market/segment
  • Customer base analysis (pre-pay and post-pay) vs competitors
  • Customer churn rates vs competitors
  • Brand strength vs competitors
  • Customer engagement vs competitors

Service Offerings Section

Figure 2: Example output - AT&T's new M2M applications platform

Telco 2.0 Transformation Index Example output - AT&T's new M2M applications platform

  • Summary findings
  • 6 service offering categories defined:
    • Core services
    • Vertical industry solutions
    • Infrastructure services
    • Embedded communications (including M2M)
    • Third-Party business enablers (including identity, marketing, advertising, payments)
    • OTT services
  • Telco 2.0 services strategies defined – ‘Happy Piper’ and ‘Service Provider’
  • AT&T’s Telco 2.0 services strategy
  • Summary performance by service offering category
  • Evaluation of specific services within each service category

Value Network Section

Figure 3: Example output - the personal history of the AT&T executive team

Telco 2.0 Example output - the personal history of the AT&T executive team
  • Summary findings
  • Management team evaluation
  • Corporate vision and goals
  • Culture
  • Organisation structure: fit with Telco 2.0 strategy, maturity, execution
  • Third-party partnerships across 7 industries:
    • Advertising and retail
    • Media and content
    • Network and IT
    • Financial services
    • Start-ups
    • Developers
    • Internet players
  • Partnerships with other CSPs: 
    • Strategy
    • Execution:
    • Vision and intent
    • Conformity with STL Partners’ CSP collaboration principles
    • Evidence of results
  • Strategy

Partnership Strategy

  • Partnership Model

  • Alignment of vision and values

  • Alignment of risk and effort

  • Alignment of rewards

  • Evidence of results

Best-Practice examples


  • Summary findings
  • Technology objectives and priorities
  • Commercial and technology alignment
  • Technology skills, processes, and partnerships
  • Technology execution:  speed and ability to meet objectives
  • Technology positioning vs other CSPs

Finance Section

Figure 4: Example output - Telco 2.0 growth diagnostics for AT&T

Example output - Telco 2.0 growth diagnostics for AT&T
  • Summary findings
  • Financial performance: profitability, return on investment, debt position, capital intensity
  • Finance and Telco 2.0 strategy alignment: use of Telco 2.0 metrics
  • Revenue Model: ability to protect Telco 1.0 revenues and grow Telco 2.0 revenues
  • Cost Model: Capital investment and operating cost levels including revenue per employee

Format and pricing

  • 152-page pdf document (PowerPoint format) with internal and external html links
  • 100+ charts and tables
  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us for pricing on +44 (0)207 247 5003 or [email protected]


Return to the Telco 2.0 Transformation Index home page, or see more on the Benchmarking Report, Telefonica, VodafoneAT&T, Verizon, Singtel and Ooredoo deep-dive reports.

Key industry terms, products and technologies referenced: 

4G LTE, ADSL, Aio Wireless, Akamai, ARO, AT&T Connect Web Conferencing, AT&T Next, Axeda, broadband,  Business in a Box, carrier Ethernet, CDN, Cisco, Cloud Architect, cloud computing, customer churn, digital advertising, digital commerce, Digital Life, digital services, DOCSIS, eHealth, enterprise services, FiOS, FTTH, GPON, hosted VoIP, IAAS, IBM, identity, IP conferencing, IPTV, ISIS, Jasper Wireless, LTE, M2M, managed hosting, managed services, messaging, mobile advertising, mobile payments, MPLS, new business models, OC-48, OpenStack, OTT, PaaS, payments, PMR, PoC, Project VIP, post-pay, pre-pay, RingCentral, SAAS, security, SIP trunking, SMBs, SMS, SONET, strategic services, Synaptic, Telco 2.0, TopLine, Tropo, TV Everywhere, U-verse, unified comms, Watson, value-added reseller, VDSL, Virtual Desktop, VMWare, voice, Voice 2.0, VoIP, VPN, Xfinity