Ariel Investments LLC - Ariel Global Fund on AT&T Inc.
Thesis
AT&T weakened as investors focused on telecom competition, wireless churn and softer pricing. Ariel believes fears of satellite-based mobile disruption are overstated because viable services remain several years away and require further technological advances. Fiber expansion, converged broadband and wireless offerings, an attractive valuation and shareholder returns support the fund's positive view.
“we continue to view the recent weakness as an attractive opportunity.”
Key risks
- Competitive pressure in U.S. telecommunications
- Higher wireless churn and softer pricing
- Future disruption from satellite-based mobile services