• Earlier this week, AT&T, T-Mobile, and Verizon agreed in principle to form a joint venture that would pool limited spectrum and use satellite-based direct-to-device technology to reduce wireless dead zones across the United States, particularly in rural and hard-to-reach areas.
• This effort to create common technical specifications and a unified satellite integration platform could reshape how U.S. carriers collaborate on coverage, redundancy, and emergency connectivity while still competing on retail pricing and service plans.
• We’ll now examine how this cross-carrier satellite venture, aimed at nearly eliminating coverage gaps, could influence AT&T’s existing investment narrative.

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AT&T Investment Narrative Recap

To own AT&T, you need to believe its 5G and fiber buildout can offset pressure from wireless churn, legacy wireline declines, and high capital needs. The new three-carrier satellite JV looks directionally supportive of AT&T’s core connectivity story, but it does not materially change the near term tension between heavy reinvestment and the need to sustain free cash flow for dividends, debt reduction, and buybacks.

The JV announcement sits alongside AT&T’s continued buybacks, which totaled US$6,569.43 million across roughly 245 million shares since late 2024. That capital return program matters for how investors think about per share earnings power and balance sheet progress, especially as AT&T leans into new coverage initiatives like satellite direct to device and continued 5G and fiber expansion.

Yet beneath the promise of near universal coverage, investors should be aware that...

AT&T's narrative projects $130.6 billion revenue and $17.0 billion earnings by 2028. This requires 1.7% yearly revenue growth and a roughly $4.3 billion earnings increase from $12.7 billion today.

Uncover how AT&T's forecasts yield a $29.41 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts already expected AT&T to reach about US$139.0 billion in revenue and US$18.7 billion in earnings before this JV, so if you see that forecast and the risk of higher copper transition costs together, it shows how widely views can differ and why this new satellite push could still shift both the bullish and more cautious cases.

Explore 7 other fair value estimates on AT&T - why the stock might be worth over 2x more than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your AT&T research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free AT&T research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AT&T's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.