AT&T Communications
AT&T Communications is the principal operating division of AT&T Inc., a multinational telecommunications conglomerate, responsible for providing wireless, broadband internet, voice telephony, and ancillary communications services primarily to over 100 million U.S. consumers and nearly 3 million business customers.[1][2]
Emerging from the 1984 antitrust-mandated breakup of the Bell System monopoly, which restructured the former AT&T into separate entities including AT&T Communications for long-distance services, the division has since integrated mobile and fixed-line operations, leveraging extensive fiber optic and spectrum assets to maintain dominance in the U.S. market.[3][4]
Notable achievements include pioneering nationwide 5G coverage and substantial investments in network infrastructure exceeding $20 billion annually in recent years, enabling high-speed data services amid growing demand.[1]
However, it has encountered controversies, particularly regarding extensive cooperation with U.S. government surveillance programs, as documented in disclosures revealing AT&T's provision of vast quantities of call records and internet metadata to the NSA, raising concerns over privacy and civil liberties.[5]
Overview
Formation and Organizational Role
AT&T Communications was formed on January 1, 1984, as a core division of AT&T Corporation in the wake of the federal antitrust divestiture that separated the company from its 22 regional Bell Operating Companies responsible for local telephone service.[6][7] This restructuring, mandated by a 1982 consent decree and effective on that date, dismantled the Bell System monopoly, allowing AT&T to retain its long-distance network while divesting local operations to foster competition in telephony markets.[3] The division's primary organizational role was to manage and operate AT&T's interexchange carrier services, including nationwide long-distance voice transmission, which generated the bulk of the company's post-divestiture revenue with assets exceeding $34 billion.[3] It functioned through a structure of regional subsidiaries—such as AT&T Communications of California, Inc. and AT&T Communications of New York, Inc.—that handled service delivery across states, leveraging the inherited coast-to-coast microwave and cable infrastructure to connect calls beyond local exchanges.[3] Within AT&T Corporation, AT&T Communications complemented the parallel AT&T Technologies division, which absorbed manufacturing (via Western Electric) and research (via Bell Laboratories), enabling focused competition in deregulated long-distance markets against emerging rivals like MCI and Sprint.[3] This bifurcation allowed AT&T to pivot from integrated monopoly operations to specialized service provision, emphasizing network efficiency and pricing innovation amid regulatory oversight by the Federal Communications Commission.[3]Current Scope and Market Presence
AT&T Communications, a subsidiary of AT&T Inc., primarily delivers wireline services including broadband internet, voice telephony, and enterprise connectivity solutions throughout the United States, complementing the broader AT&T portfolio that integrates wireless operations via AT&T Mobility. As of the third quarter of 2025, AT&T Inc.'s communications segment, encompassing these activities, reported revenues of $29.5 billion, reflecting a 1.5% year-over-year increase driven by growth in mobility and broadband subscriptions offset by declines in legacy services.[8] The division operates extensive fiber-optic infrastructure, passing over 30 million locations across more than 100 metro areas as of June 2025, positioning it as the largest fiber network provider in the U.S.[9] In the wireless domain, AT&T maintains a leading position as one of three primary U.S. carriers, with its network covering 99% or more of the national population and ranking second in 5G coverage at approximately 30% of the country. The company added 405,000 postpaid phone net subscribers in Q3 2025, contributing to sustained market share amid competition from Verizon and T-Mobile, where the sector remains oligopolistic with the top three operators controlling the majority of connections.[10][11][12] Broadband efforts emphasize fiber expansion alongside fixed wireless access (FWA) via AT&T Internet Air, achieving 10 million total fiber subscribers and 1 million FWA customers by mid-2025, with Q3 net adds of 288,000 fiber and 270,000 FWA connections fueling cord-cutting trends.[13][14][15] For business and enterprise solutions, AT&T Communications provides managed connectivity, cybersecurity, and IT services to large and mid-market clients, earning top rankings in customer satisfaction for large enterprise and medium business internet services in 2025.[16] However, business wireline revenues fell 7.8% year-over-year in Q3 2025, attributable to a 17.3% drop in legacy voice and transitional services, though offset by strategic shifts toward high-speed fiber and 5G integration for corporate networks.[8] Overall, AT&T's U.S.-centric operations, bolstered by over $145 billion in network investments since 2019, underscore its dominance in connectivity infrastructure while navigating secular declines in traditional telephony.[9]Historical Development
Origins in the Bell System (1885–1984)
The American Telephone and Telegraph Company (AT&T) was incorporated on March 3, 1885, as a subsidiary of the American Bell Telephone Company to construct and operate a long-distance telephone network across the United States.[17][3] This followed the invention of the telephone by Alexander Graham Bell in 1876 and the formation of the Bell Telephone Company in 1877 to commercialize it, with American Bell assuming control of the patents by 1881.[18] AT&T's initial focus was on interconnecting regional exchanges, starting with the first long-distance line from New York to Philadelphia in 1885 and extending to Boston by 1886, using metallic circuits to reduce signal attenuation.[3] Under Theodore Newton Vail, who became general manager in 1885 and later president in 1907, AT&T pursued a strategy of consolidation, acquiring independent telephone companies and licensing Bell patents to achieve near-universal coverage.[3] By 1899, AT&T had absorbed American Bell, becoming the parent entity of the Bell System, which encompassed 22 regional Bell Operating Companies (BOCs) for local service, Western Electric for equipment manufacturing (acquired fully by 1899), and later Bell Laboratories for research (formed in 1925 from the merger of Western Electric's research arms).[7][19] The system operated as a regulated vertical monopoly, justified by the high fixed costs of infrastructure and the goal of universal service, with AT&T controlling interstate toll services while BOCs handled local loops under state regulation.[20] Key regulatory milestones reinforced this structure: the Kingsbury Commitment of 1913, under which AT&T agreed to divest competitive local interests and interconnect with independent carriers, averting antitrust dissolution; temporary government seizure during World War I (1918–1919); and the Communications Act of 1934, establishing the Federal Communications Commission (FCC) to oversee interstate operations.[3][7] Post-World War II expansion included transcontinental microwave networks by 1951 and the first transatlantic telephone cable (TAT-1) in 1956, solidifying AT&T's dominance in long-distance with over 90% market share.[19] A 1956 antitrust consent decree barred AT&T from unregulated businesses, confining it to common carrier services and equipment for its own use.[20] Challenges to the monopoly intensified in the 1960s and 1970s, driven by technological shifts like microwave relays enabling competition and FCC decisions such as the 1956 Hush-a-Phone ruling (allowing non-harmful attachments) and the 1968 Carterfone decision (permitting private interconnections), which eroded AT&T's control over end-to-end service.[7] These precedents fueled the 1974 U.S. Department of Justice antitrust suit alleging monopolization of local and long-distance markets through exclusionary practices.[20] The case culminated in the 1982 Modified Final Judgment, approved in 1983, requiring divestiture effective January 1, 1984: AT&T retained its long-distance operations (reorganized as AT&T Communications), Western Electric (renamed AT&T Technologies), and Bell Labs, while spinning off the seven regional BOCs to handle local exchange services, ending the integrated Bell System.[7][20] This restructuring aimed to foster competition in long-distance while preserving local monopoly regulation, though it reflected decades of accumulated evidence that the system's efficiencies masked anticompetitive bundling of local and toll services.[19]Post-Divestiture Era (1984–2005)
Following the completion of the antitrust-mandated divestiture on January 1, 1984, AT&T Communications became the dedicated division responsible for interexchange carrier services and long-distance telephony, operating through 23 subsidiaries to manage the former Bell System's nationwide transmission network. AT&T retained Western Electric for manufacturing and Bell Laboratories for research, while relinquishing local exchange operations to seven independent Regional Bell Operating Companies (RBOCs). This restructuring ended AT&T's integrated monopoly structure, exposing its long-distance operations to direct competition from established rivals like MCI and Sprint, as well as new entrants, with the Federal Communications Commission enforcing equal access provisions to enable customers to dial long-distance carriers without operator assistance.[20][21] The influx of competitors rapidly eroded AT&T's dominance in the long-distance market, where its revenue share fell from 90.96% in 1984 to 47.9% by 1996, accompanied by a roughly 40% decline in interstate long-distance prices due to aggressive pricing and reductions in RBOC access charges mandated by regulators. AT&T responded by introducing discounted calling plans and investing in digital transmission technologies to maintain service quality, but persistent market fragmentation and high fixed costs in maintaining the legacy network hindered profitability. By the mid-1990s, annual long-distance minutes carried by AT&T had grown in absolute terms, yet its relative position weakened as competitors captured segments through targeted business services and international expansion.[22][23][24] In September 1995, facing stagnant growth and diversification pressures, AT&T announced a voluntary trisection into three separate entities effective in 1996: a communications-focused company retaining long-distance, wireless, and related services under AT&T Corporation; Lucent Technologies for equipment and R&D; and NCR for computing operations, resulting in the elimination of approximately 8,500 positions primarily from overhead. AT&T Communications continued as the core long-distance arm within the communications entity, benefiting from the 1996 Telecommunications Act's deregulation, which lifted barriers for RBOCs to enter long-distance markets upon satisfying public interest criteria—though this ultimately intensified competitive pressures on AT&T as former affiliates like SBC and BellSouth began offering bundled services.[25][26] Into the early 2000s, AT&T's long-distance segment grappled with revenue contraction from technological shifts toward voice-over-IP and cable telephony, alongside RBOC bundling of local and long-distance offerings, prompting AT&T to pivot toward enterprise data services and international traffic. In July 2004, the company halted marketing efforts for new residential long-distance customers, signaling a strategic retreat from that commoditized segment amid declining margins. The era culminated in March 2005 when SBC Communications acquired AT&T Corporation for $16 billion in stock, adopting the AT&T name and absorbing its long-distance infrastructure into a reconsolidated entity, effectively ending the post-divestiture independence of AT&T Communications.[27][28][24]Reconsolidation and Modern Expansion (2006–Present)
In December 2006, AT&T Inc. completed its $86 billion acquisition of BellSouth Corporation, announced earlier that year, which granted full control of their joint venture Cingular Wireless and consolidated regional wireline operations across much of the southeastern United States.[29][30] This merger, approved by the U.S. Department of Justice in October 2006 after review for competitive impacts, effectively reconsolidated key elements of the pre-1984 Bell System by reuniting former affiliates under single ownership, enhancing AT&T's dominance in both local telephony and emerging wireless markets.[31][32] The transaction positioned AT&T as the largest U.S. wireless provider at the time, with Cingular's established network serving as a foundation for subsequent mobility expansions. From 2007 onward, AT&T prioritized wireless growth, achieving steady subscriber increases through network investments and acquisitions such as Cricket Wireless in 2014 to bolster prepaid offerings.[33] Wireless postpaid phone net additions reached 405,000 in the third quarter of 2025 alone, contributing to total subscribers exceeding 117 million by 2024 and supporting service revenue growth of 3.5% in 2024.[12][11] Parallel wireline efforts included launching AT&T Fiber in 2013, initially in Austin, Texas, followed by aggressive nationwide deployment.[34] By June 2025, the fiber network passed over 30 million consumer and business locations, with $145 billion invested in wireline and wireless infrastructure between 2020 and 2024 to enable high-speed broadband and prepare for 5G integration.[35][36] In the 2020s, AT&T shifted toward streamlining by divesting non-core assets, including its remaining stake in DirecTV to private equity firm TPG in 2021 and the 2022 merger of WarnerMedia with Discovery Inc., which reduced media diversification and lowered debt to refocus on telecommunications.[37][38] These moves aligned with a capital allocation strategy emphasizing connectivity investments, yielding improved earnings and continued fiber subscriber gains, such as 261,000 net adds in early 2025, amid competitive pressures in broadband and mobility.[39]Services and Offerings
Wireless and Mobility Services
AT&T's wireless and mobility services, primarily operated through its subsidiary AT&T Mobility LLC, provide cellular voice, text messaging, and high-speed data connectivity to consumers and businesses across the United States. These services utilize a combination of 4G LTE and 5G networks, with offerings including postpaid plans like the Unlimited Premium PL, which delivers unlimited talk, text, and data without speed reductions tied to usage volume, alongside features such as mobile security and fraud call blocking.[40][41] Prepaid options, marketed under the AT&T Prepaid brand, cater to cost-conscious users with flexible, no-contract plans starting at lower price points, while bundled promotions often integrate wireless with fiber internet for discounts up to $150 via reward cards.[42][43] The company's 5G deployment emphasizes low-band spectrum for broad coverage, reaching over 320 million people in more than 27,300 cities and towns, enabling reliable connectivity in rural and suburban areas.[44] Mid-band 5G+ enhances speeds in dense urban environments like stadiums and airports, supporting applications from streaming to IoT devices, with all unlimited plans including 5G access at no additional cost where compatible devices and coverage exist.[45] Business-oriented mobility solutions extend to enterprise-grade 5G connectivity, international roaming plans, and consulting for 5G integration, facilitating innovations in sectors such as transportation and entertainment.[46][47] As of the third quarter of 2025, AT&T reported adding 405,000 net postpaid phone subscribers, surpassing analyst expectations and driving a 3.1% year-over-year increase in mobility segment revenues to support ongoing network expansions.[48][49] This growth reflects bundling strategies with devices like the iPhone 17 and fixed wireless access additions of 270,000 subscribers, positioning AT&T as a leader in converged wireless offerings amid competitive pressures from rivals like Verizon and T-Mobile.[50] Coverage remains subject to device compatibility and potential temporary throttling during congestion, with maps indicating approximate outdoor reach that varies by location.[51][52]Wireline and Broadband Services
AT&T's wireline services include traditional voice telephony and broadband internet delivery over fixed infrastructure, primarily targeting residential and business customers. The Consumer Wireline segment offers home phone services alongside broadband, with voice revenues declining due to cord-cutting trends.[8] Business wireline solutions provide dedicated Ethernet, MPLS, and IP-based connectivity for enterprises, though legacy voice and data services have seen revenue drops of 7.8% year-over-year in Q3 2025.[12] Broadband services have shifted from copper-based DSL and U-verse IP DSL to fiber-optic AT&T Fiber, offering symmetric speeds up to 5 Gbps without data caps or contracts.[53] Legacy AT&T Internet, rebranded from U-verse, delivers speeds up to 100 Mbps via fiber-to-the-node DSL technology in non-fiber areas.[54] In Q3 2025, consumer broadband revenues grew 8.2%, driven by 16.8% fiber revenue expansion and 270,000 AT&T Fiber net additions.[8] AT&T Fiber coverage continues to expand, with availability checks via address-specific tools, prioritizing urban and suburban markets.[55] For business customers, wireline broadband emphasizes scalable fiber connections with built-in security and ultra-low latency, supporting applications like cloud computing and IoT.[56] Overall, AT&T's wireline infrastructure leverages a mix of legacy copper for rural legacy services and extensive fiber deployment, with investments focusing on all-fiber networks to counter competitive pressures from cable and fixed wireless alternatives.[1] Consumer wireline revenues reached $3.56 billion in Q3 2025, up 4.1% year-over-year, reflecting fiber's role in sustainable growth amid broader wireline contraction in traditional segments.[12]Business and Enterprise Solutions
AT&T's Business and Enterprise Solutions division delivers integrated connectivity, networking, security, and cloud services primarily to mid-sized and large enterprises, government entities, and public sector clients. These offerings leverage AT&T's extensive fiber optic network, which spans over 200,000 route miles, and its 5G infrastructure to support high-bandwidth applications such as data centers, IoT deployments, and hybrid work environments.[57] Key components include dedicated internet services providing symmetrical speeds up to 400 Gbps, software-defined wide area networking (SD-WAN) for optimized traffic management, and managed security services encompassing threat detection and response.[58][57] In the realm of enterprise infrastructure, AT&T provides Infrastructure as a Service (IaaS) solutions, including private cloud platforms and data center augmentation with integrated IT service management tools. These enable scalable computing resources without on-premises hardware investments, often customized for compliance-heavy sectors like finance and healthcare.[59] Voice and collaboration tools feature unified communications as a service (UCaaS), VoIP systems, contact centers with AI-driven analytics, and API-enabled conferencing to facilitate remote operations.[60] Mobility solutions extend to enterprise-grade 5G plans with priority access and IoT connectivity for asset tracking and edge computing, supporting over 50 million connected devices annually across business customers.[46] The business wireline segment, which houses these enterprise solutions, generated approximately $18 billion in annual revenue as of recent filings, driven by demand for IP-based broadband and legacy-to-modern migrations.[61] AT&T emphasizes managed services to reduce operational complexity, such as end-to-end network orchestration and cybersecurity suites that include zero-trust architectures and DDoS mitigation, amid rising threats reported in industry benchmarks.[57] These solutions compete in a market where enterprises prioritize reliability, with AT&T claiming 99.99% uptime for dedicated services through proactive monitoring.[58]Infrastructure and Technological Advancements
Network Evolution and Key Milestones
AT&T's network infrastructure originated with the construction of the first long-distance telephone lines in the late 19th century, relying on analog copper wire transmission that limited capacity and distance. By 1947, the company introduced mobile telephone service and achieved the nation's first broadband transmission using coaxial cable, marking an early step toward higher-bandwidth capabilities.[62] The transition to digital switching began in the 1970s, with AT&T deploying its first full digital toll tandem switch, the No. 4ESS, in Chicago in 1976, supporting up to 100,000 trunks and enabling more efficient, scalable voice traffic handling over analog systems.[63] This paved the way for widespread digitalization, including the 5ESS switch entering service in 1982, which integrated digital processing for local and mobile exchanges. By the 1980s, AT&T advanced to fiber optic deployment, installing initial backbones connecting East and West coasts at 45 Mb/s using multimode fiber and 850 nm lasers, replacing satellites for long-haul transmission due to superior bandwidth and reliability. Wireless network evolution accelerated with the launch of the first commercial cellular service on October 13, 1983, in Chicago, utilizing analog 1G technology to serve initial mobile subscribers.[64] Subsequent generations included 2G GSM rollout in the 1990s, followed by 3G and 4G LTE upgrades; AT&T discontinued its 2G network on January 1, 2017, shifting focus to LTE enhancements in select markets. In 2002, AT&T established a nationwide intelligent optical network, improving restoration times and capacity for fiber-based services.[65] Modern milestones emphasize fiber and 5G convergence. AT&T initiated its Fiber-to-the-Home (FTTH) rollout in 2013, expanding to tens of thousands of locations by 2014 amid rising data demands projected to increase 5x by 2025.[34] By June 2025, the network passed over 30 million locations, ahead of schedule through investments exceeding $20 billion annually in fiber infrastructure from 2020–2024.[35] For wireless, low-band 5G covered over 320 million people across 27,300 cities by the early 2020s, with mid-band expansions reaching 150 million by end-2022.[66] Standalone 5G (SA) deployments began in 2020 for enterprise low-latency applications, achieving nationwide coverage by October 2025, enabling cloud-native architectures and reduced reliance on 4G cores.[67][68] In July 2025, 5G RedCap technology extended coverage to over 200 million points nationwide, optimizing for IoT devices with lower power needs.[69] These developments reflect AT&T's shift toward integrated IP-based, high-capacity networks supporting exponential data growth.Recent Investments in 5G and Fiber (2010s–2025)
AT&T initiated significant infrastructure upgrades in the 2010s through Project VIP, a multi-year initiative launched in 2012 to transition its network to an all-IP architecture, including substantial fiber deployments for backhaul to support expanding wireless services.[70] The company pledged $14 billion for broadband expansion over three years starting in 2012, focusing on wireline IP enhancements and fiber to reach 57 million locations, which laid foundational support for future 5G backhaul needs.[71] State-level investments from 2010 to 2012 totaled billions, such as $7 billion in Texas and $3.9 billion in Georgia, primarily enhancing wireline and early 4G LTE networks with fiber optic upgrades.[72][73] Early 5G efforts began with trials in the mid-2010s, culminating in AT&T's launch of what it termed mobile 5G service in three U.S. cities—Atlanta, Dallas, and Waco—in February 2018, using low-band spectrum initially.[74] By late 2018, the company expanded to a standards-based 5G network covering a dozen cities, marking the first such deployment by a U.S. carrier, though initially without compatible devices.[75] These efforts were supported by ongoing fiber investments, as fiber optic lines became critical for 5G's high-capacity requirements, with Project VIP extending fiber to over 400,000 business locations by 2014.[76] From 2019 onward, AT&T escalated capital expenditures, investing over $145 billion in U.S. communications infrastructure through 2023, with a primary emphasis on 5G spectrum deployment and fiber expansion to enable converged wireless and wireline services.[77] Between 2018 and 2022, investments exceeded $140 billion in wireless and wireline networks, accelerating 5G rollout to cover 290 million people by 2023.[78] Fiber passings grew rapidly, reaching 29.5 million locations by Q1 2025 and surpassing 30 million by June 2025, positioning AT&T as the largest U.S. fiber provider and halfway to a 60 million location goal by 2030 through organic builds and acquisitions like portions of Lumen's fiber network.[39][35][79] In 2025, AT&T raised its annual capital investment guidance to $22–$22.5 billion, allocating significant portions to mid-band 5G expansion targeting 300 million people by end-2026 and fiber acceleration to four million new locations annually by 2026, supported by $3.5 billion redirected from operational savings.[80][81] Quarterly capital expenditures reached $4.9 billion in Q2 2025, up from prior year, with combined fiber and wireless spend emphasizing standalone 5G deployment nationwide to millions of customers.[80][82] This strategy integrates fiber as backhaul for 5G, driving fiber revenue growth of 19% year-over-year in Q1 2025 and adding 261,000 net fiber subscribers.[39] By mid-2025, the 5G network utilized low-band spectrum to reach over 315 million people across more than 26,200 cities and towns.[83]Controversies and Regulatory Challenges
Antitrust History and Monopoly Criticisms
The United States Department of Justice filed an antitrust lawsuit against AT&T on November 20, 1974, in the U.S. District Court for the District of Columbia, alleging violations of Section 2 of the Sherman Antitrust Act through anticompetitive practices that maintained AT&T's monopoly over telephone services and equipment markets.[7] The suit targeted AT&T's integrated structure, including its control of local operating companies, manufacturing subsidiary Western Electric, and long-distance services, which DOJ argued restrained competition by denying rivals access to local networks and equipment.[7] This action followed earlier challenges, such as a 1949 Sherman Act complaint dismissed without divestiture and a 1956 consent decree that restricted AT&T to regulated telephony but preserved its dominance.[7] The case settled via the Modified Final Judgment on January 8, 1982, requiring AT&T to divest its 22 local operating companies effective January 1, 1984, which were reorganized into seven regional holding companies known as the Baby Bells.[7] AT&T retained its long-distance operations, Bell Laboratories research arm, and Western Electric manufacturing, while the decree lifted barriers to entering non-telephony markets like computers.[7] The divestiture aimed to eliminate vertical integration that DOJ viewed as enabling monopoly power, fostering competition in long-distance and equipment; post-1984, long-distance rates declined significantly due to new entrants, and the U.S. telecom sector saw accelerated innovation, though local service rates rose to reflect previously subsidized costs.[21] Post-divestiture reconsolidation drew renewed antitrust scrutiny, as Baby Bells pursued mergers that critics argued recreated monopoly-like conditions. In 2005, SBC Communications (a Baby Bell successor) acquired the original AT&T Corporation for $16 billion, with DOJ and FCC approval contingent on limited divestitures and behavioral remedies to preserve competition in local and long-distance markets.[84][85] The merged entity, renamed AT&T Inc., then acquired BellSouth in 2006, further consolidating regional wireline assets. In 2011, DOJ blocked AT&T's proposed $39 billion acquisition of T-Mobile USA, citing reduced wireless competition that would eliminate a disruptive low-price rival, potentially raising consumer prices by billions and harming service quality in an industry already trending toward oligopoly.[86] Monopoly criticisms persist into the 2020s, focusing on AT&T's dominant position alongside Verizon in wireless (controlling over 60% of U.S. subscribers) and wireline broadband, where duopolistic or monopolistic control in many regions limits consumer choice and sustains high prices.[87] Over one-third of Americans lack access to more than one broadband provider, with AT&T's fiber and legacy copper networks criticized for inadequate rural deployment and slow upgrades despite regulatory incentives.[88] Analysts attribute ongoing bottlenecks to the 1996 Telecommunications Act's failure to fully open local loops to competition, allowing incumbents like AT&T to leverage scale advantages while new entrants face high barriers, though DOJ evaluations note that wireless and over-the-top services have eroded some traditional monopoly rents.[21]Data Security Breaches and Privacy Issues
AT&T has experienced multiple significant data breaches, primarily involving customer personal information and communication metadata, with incidents traced back to vulnerabilities in third-party vendors and cloud storage systems. In August 2021, the hacking group ShinyHunters accessed and stole personal data on approximately 23 million AT&T customers, including names, addresses, phone numbers, and Social Security numbers, which was later sold on underground forums.[89] This breach originated from unauthorized access to AT&T's systems but was not publicly disclosed until data surfaced online. Subsequent analysis linked similar datasets to repackaged leaks emerging in 2025, where over 86 million records, including decrypted SSNs, were redistributed, amplifying risks of identity theft.[90]| Date | Incident Description | Affected Data | Number Impacted |
|---|---|---|---|
| August 2021 | ShinyHunters hack via compromised access | Names, addresses, phone numbers, SSNs | ~23 million[89] |
| August 2022 | Discovery of stolen customer records | Personal identifiers, account details | ~23 million (overlapping prior breach)[91] |
| January 2023 | Breach via third-party vendor Snowflake | Call/text metadata, some personal info | ~110 million (2022 data)[92][93] |
| March 2023 | Vendor attack leading to notification | Personal data via external partner | 9 million[91] |
| April 2024 | Unauthorized download of call/text logs | Interaction records (dates, numbers) | Nearly all wireless customers[94][95] |
Labor Practices and Customer Service Disputes
AT&T has faced ongoing disputes with the Communications Workers of America (CWA), representing tens of thousands of its wireline and mobility employees, over contract negotiations, working conditions, and alleged unfair labor practices. In August 2024, approximately 17,000 CWA members in the Southeast initiated an indefinite strike after accusing AT&T Southeast of bad-faith bargaining and retaliatory actions, including threats to discipline union representatives; the union filed unfair labor practice charges with the National Labor Relations Board.[106][107] The strike followed the expiration of contracts covering healthcare costs, job security, and outsourcing, echoing a 2019 walkout by 20,000 Southern workers that secured wage increases and pension protections after six days.[108] AT&T maintains that it has ratified agreements with CWA covering about 23,000 employees in the Southeast and West, emphasizing competitive pay and benefits, though critics argue the company prioritizes cost-cutting amid network upgrades.[109] Employee lawsuits have highlighted alleged discrimination in working conditions and terminations. In January 2025, the Equal Employment Opportunity Commission (EEOC) sued AT&T's BellSouth unit for disability discrimination, claiming the company reassigned or fired workers exceeding a body weight limit under a physical capacity test, affecting at least a dozen employees despite medical accommodations.[110] Age discrimination claims have persisted, including a 2016 jury verdict holding AT&T liable for firing a 60-year-old manager in favor of younger hires, and a 2020 class action alleging 2019 layoffs disproportionately targeted workers over 40 to reduce pension liabilities.[111][112] A 2019 federal court ruling invalidated AT&T's severance release agreements for waiving age claims without proper disclosure, enabling further suits.[113] Pregnancy-related suits, such as a 2018 class action over rigid attendance policies denying accommodations, were denied certification in 2022 due to insufficient commonality among plaintiffs.[114][115] Reverse discrimination claims have also advanced, as in a 2022 case where a white male executive alleged bias in diversity hiring quotas.[116] Customer service disputes have centered on billing transparency, data management, and service reliability, leading to regulatory fines and settlements. The Federal Trade Commission (FTC) sued AT&T in 2014 for "data throttling," secretly capping speeds for unlimited plan users after high usage thresholds, affecting millions and prompting a 2019 settlement with refunds up to $60 per claimant.[117] Class actions over hidden fees, such as administrative charges not disclosed in advertised pricing, have challenged AT&T's practices as deceptive, with a 2023 ruling denying dismissal of bait-and-switch claims.[118] The Federal Communications Commission (FCC) imposed a $13 million fine in September 2024 for a 2023 breach exposing call records of nearly 9 million customers, citing inadequate safeguards that compromised service trust, though AT&T contested the scope of liability.[119] An earlier $25 million FCC settlement addressed 2017 lapses in protecting customer location data from unauthorized access by third parties.[120] These incidents reflect broader patterns of high complaint volumes to the FCC, often exceeding industry averages for billing errors and outage resolutions, though AT&T invests in AI-driven support to mitigate issues.[121]Financial Performance and Strategic Shifts
Revenue Trends and Segment Breakdown
AT&T Communications, the core operating segment of AT&T Inc., generated annual revenues of $117.1 billion in 2022, $118.0 billion in 2023, and $117.7 billion in 2024, reflecting overall stability amid shifts in subsegment performance.[122] This plateau follows the 2022 divestiture of WarnerMedia, which refocused the company on telecommunications and eliminated volatile media revenues, allowing Communications to constitute over 96% of consolidated operating revenues by 2024.[122] In the third quarter of 2025, segment revenues reached $29.5 billion, a 1.5% increase year-over-year, driven by wireless and broadband gains despite ongoing legacy service erosion.[123] The segment's revenue is predominantly derived from three subsegments: Mobility (wireless services), Business Wireline, and Consumer Wireline. Mobility has exhibited consistent growth, rising from $81.8 billion in 2022 to $85.3 billion in 2024, fueled by postpaid phone net additions (1.7 million in 2024) and service revenue increases of 3.3% in the fourth quarter of 2024.[122][124] Business Wireline revenues declined from $22.5 billion in 2022 to $18.8 billion in 2024, attributable to secular declines in legacy voice and data services amid customer migration to IP-based alternatives and copper network decommissioning (network access lines fell to 3.3 million by 2024).[122][125] Consumer Wireline showed modest expansion, increasing from $12.7 billion in 2022 to $13.6 billion in 2024, primarily through fiber broadband subscriber growth (1.0 million net adds in 2024, totaling 9.3 million connections) offsetting legacy declines.[122]| Year | Total Communications ($B) | Mobility ($B) | Business Wireline ($B) | Consumer Wireline ($B) |
|---|---|---|---|---|
| 2022 | 117.1 | 81.8 | 22.5 | 12.7 |
| 2023 | 118.0 | 84.0 | 20.9 | 13.2 |
| 2024 | 117.7 | 85.3 | 18.8 | 13.6 |