Businessweek

AT&T Inc. provides telecommunications services in the United States and worldwide. The company offers its services and products to consumers in the U.S. and services and products to businesses and other providers of telecommunications services worldwide. The services and products that the company offers vary by market, and include wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, telecommunications equipment, managed networking, and wholesale services. The company’s local exchange subsidiaries operate as the incumbent local exchange carrier in 22 states: Alabama, Arkansas, California, Connecticut, Illinois, Indiana, Florida, Georgia, Kentucky, Louisiana, Kansas, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Wisconsin. Segments WIRELESS Wireless consists of the company’s subsidiary, AT&T Mobility LLC, which operates as a wireless provider to both business and consumer subscribers. As of December 31, 2012, the company served 107 million wireless subscribers. It classifies its subscribers as either postpaid, prepaid, connected device or reseller. Services and Products The company offers a range of nationwide wireless voice and data communications services in various pricing plans, including postpaid and prepaid service plans. Its offerings are tailored to meet the communications needs of targeted customer segments, including youth, family, active professionals, small businesses, government and major national corporate accounts. Service: The company’s voice service is generally offered on a contract basis for one- or two-year periods, referred to as postpaid. Under the terms of these contracts, service is billed and provided on a monthly basis according to the applicable rate plan chosen. Its wireless services include basic local wireless communications service, long-distance service and roaming services. Roaming services enable its subscribers to utilize other carriers’ networks when they are roaming outside its network footprint. The company also charges fees to other carriers for providing roaming services to their customers when their customers utilize its network. The company also offers prepaid voice service to certain customers who prefer to control usage or pay in advance. In 2012, the company launched new Mobile Share data plans. Other data-centric device users are classified as either postpaid customers (primarily tablet, netbook and notebook users) or prepaid customers since they purchase service directly from it. Equipment: The company sells various handsets, wirelessly enabled computers (notebooks and tablets) and personal computer wireless data cards manufactured by various suppliers for use with its voice and data services. It sells through its own company-owned stores, agents or third-party retail stores. The company also sells accessories, such as carrying cases, hands-free devices, batteries, battery chargers and other items, to consumers, as well as to agents and third-party distributors for resale. Like other wireless service providers, the company often provides postpaid contract subscribers substantial equipment subsidies to initiate, renew or upgrade service. WIRELINE Wireline subsidiaries provide primarily landline voice and data communication services, AT&T U-verse high-speed broadband, video, and voice services (U-verse) and managed networking to business customers. As of December 31, 2012, the company is marketing U-verse services to approximately 24.5 million customer locations (locations eligible to receive U-verse service). As of December 31, 2012, it had 8.0 million total U-verse subscribers (high-speed Internet and video), including 7.7 million Internet and 4.5 million video subscribers (subscribers to both services are only counted once in the total). Wireline subsidiaries provide both retail and wholesale communication services domestically and internationally. The company divides its wireline services into three product-based categories: data, voice and other. The company responded by offering packages of comb