How Will The Re-Made AT&T Inc. (T) Look Like Post DirecTV Deal?

AT&T Inc. (NYSE:T) also known as ‘Ma Bell’ is one of the largest provider of mobile and fixed telephone service in United States. Its dominance in telephone service industry is very well known, but it has displayed its intent to broaden the customer base with the announcement about acquisition of ‘DirecTV’ in May. AT&T Inc. (NYSE:T) CFO, John Stephens talked on CNBC about this acquisition plan and company’s interest in stepping into emerging markets.

Stephens said that acquisition of DirecTV adds a lot of the company like AT&T Inc. (NYSE:T). He pointed out that this acquisition gives them a potential customer base of 100 million in addition to the 300 million wireless customer base. He added that this gives AT&T Inc. (NYSE:T) the opportunity to become a national level company.

“[…] DirecTV is a great example. We will be a national video presence, a 100 million potential customers. We got a national wireless footprint over 300 million potential customers and we are going to be a 70 million broad band company. We are going to have the ability here in US to serve on a national basis,” Stephens said.

Stephens added that DirecTV also brings in the opportunity to expand in Mexico, Latin America and diversify AT&T Inc. (NYSE:T)’s revenue. He mentioned that post acquisition of DirecTV, 90% of revenue would come from data, wireless and video.

“That’s a re-made AT&T,” Stephens said.

Stephens mentioned that expanding into Mexico as a great opportunity since it’s the third largest trading partner for AT&T Inc. (NYSE:T). He added that AT&T Inc. (NYSE:T) has blended into the national communication system in United States and continue to provide quality service across the country starting from northern border to southern tip at Mexico. He said that the company is excited to capitalize on the opportunities in Mexico and provide quality service to customers there as well.

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