How AT&T Makes Money

The company's Communications segment generates the most revenue

By Matthew Johnston
Updated June 13, 2024
12:44 PM EDT
Reviewed by
Robert C. Kelly
Robert C. Kelly
Reviewed by Robert C. Kelly
Full Bio
Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business executive. He is a professor of economics and has raised more than $4.5 billion in investment capital.
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AT&T Inc. (T) is a global telecommunications company. It provides telecommunications, media, and technology services globally. AT&T offers a broad range of products and services that vary by market, and it operates through two reportable business segments: Communications and Latin America.

Key Takeaways

  • AT&T offers telecommunications, media, and technology services.
  • Its Communications segment generates most of its revenue.
  • AT&T's competitors include Verizon and T-Mobile.


AT&T's Industry

AT&T faces competition from companies offering wireless, video and broadband, voice and data, media, and advertising services. The company's competitors include Verizon Communications Inc. (VZ) and T-Mobile US Inc. (TMUS). AT&T operates through two main business segments: Communications and Latin America.

  • Communications: Provides wireless and wireline telecom and broadband services to consumers in the U.S. and global industries. Services and products are marketed under AT&T, AT&T Business, Cricket, AT&T PREPAIDSM, and AT&T Fiber.
  • Latin America: Enables wireless services in Mexico through regional and national wireless networks.

AT&T's Financials

In Feb. 2024, AT&T reported financial results for its 2023 fiscal year (FY) ended Dec. 31, 2023. The company posted a total operating revenue of $122.4 billion, an increase of 1.4% year over year (YOY).

Communications, including Mobility, Business Wireline, and Consumer Wireline, accounted for 97% of revenues. The Latin America segment contributed 3%. The increase reflects greater Mobility and Consumer Wireline revenues and higher revenues in the Mexico business unit.

History and Leadership

AT&T was formed as one of several regional holding companies created to hold AT&T Corporation's local telephone companies. On Jan. 1, 1984, AT&T was formed under an anti-trust consent decree, becoming an independent publicly traded telecommunications services provider.

Between 2006 and 2021, the company acquired Leap Wireless, BellSouth Corp., DIRECTV, and Cingular Wireless. AT&T also held interest in TimeWarner Inc. and WarnerMedia but separated from this business segment in 2022. As of 2024, John Stankey serves as CEO of AT&T.

Recent Developments

In 2023, AT&T reached its coverage target of more than 210 million people with its nationwide 5G network. The company partnered with FirstNet Authority in 2024, investing $6.3 billion, to deliver full 5G capabilities on FirstNet, which provides America’s first responders with priority and preemption service in emergencies.

Which Government Agency Regulates Communication Companies?

The Communications Act of 1934 and related laws allow the Federal Communications Commission (FCC) to regulate the U.S. operations of AT&T's interstate telecommunications services.

How Many Customers Does AT&T Serve?

In 2023, over 127 million customers were connected to AT&T services.

Where Is AT&T's Headquarters?

AT&T's headquarters is located in Dallas, TX.

The Bottom Line

AT&T serves customers in the U.S. and Latin America through consumer and business lines. Its 5G network covers nearly 99% of Americans. The company was founded in 1984 following antitrust litigation to dismantle telephone communication monopolies.

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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 12.

  2. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Pages 12-13.

  3. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 29.

  4. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 10.

  5. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 4.

  6. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 5.

  7. AT&T Inc. "FirstNet Authority, AT&T Announce 10-Year Investment to Transform America’s Public Safety Broadband Network."

  8. AT&T Inc. "Form 10-K for the fiscal year ended December 31, 2023," Page 14.

  9. AT&T Inc. "Corporate Profile."