AT&T Inc (NYSE:T)

Does iPhone ring a bell??? Buy the stock.

McKinsey Consulting warns the telecom operators that if the regulators encourage the further adoption of broadband, a vast market awaits VoIP providers because the cost of making calls is so much lower. Even in the absence of any additional impetus, VoIP will gradually erode fixed-telephony revenues. The market share at risk was then assessed on the assumption that half of them would consider switching. At current trends in the adoption of both broadband and VoIP, 10 to 20% of users in Japan, the United Kingdom, and the United States may switch to VoIP in the time span of 2007 to 2010. For fixed-line incumbents, this translates into threatened voice revenues of approximately $2 billion to $2.7 billion in Japan, $500 million to $700 million in the United Kingdom, and $4.3 billion to $5.5 billion in the United States.
 
AT&T Inc., is a provider of telecommunications services in the United States and the world. The services and products that it offers vary by market, and include: local exchange services, long-distance services, data/broadband, Internet services etc.  

Randall L. Stephenson is chairman of the board and chief executive officer. Before the current appointment he was the COO of the company and was responsible for all wireless and wireline operations. Under his watchful eyes the company outperformed its peers in nearly every category. He began his career with Southwestern Bell Telephone in 1982. In 1996 he became the controller for SBC Communications where in he progressed to take charge as chief financial officer for SBC. He helped the company reduce ts net debt from $30 billion to zero.  

Rick G.Lindner is the Chief Financial Officer. He began his career with SBC through its subsidiary, Southwestern Bell Telecom, in 1986.    

At & T's main competitors are Qwest Communications International Inc., Sprint Nextel Corp. and Verizon Communications Inc. Operating income increased $2.4 billion in the third quarter and $7.2 billion for the first nine months. This increase reflects the addition of BellSouth's revenues post acquisitions. Operating income margin decreased 18.7% in 2006 to 17.6% in 2007 in this quarter. But in the nine month period increased from 16.4% in 2006 to 16.8% in 2007. The positive impact of the BellSouth acquisition was offset by the continued decline in retail access lines, all because of competition. This means customers disconnected At& T's primary and additional lines and switched to competitors' wireless, Voice over Internet Protocol (VoIP) and cable offerings for voice and data. The highlight of wireless service revenue is the iPhone as the company has the exclusivity. 
 
Operating revenues increased $14.5 billion or 92.7%, in the third quarter and $41.4 or 87.8%, for the first nine months. Also contributing to the operating revenue increase was continuing growth in data, primarily related to Internet Protocol (IP) data, partially offset by the continued decline in voice revenues. Wireless data growth has also been strong and is expected to continue.  
 
AT&T has shown tremendous improvement in its finances mainly due to strategic tie up and other acquisitions. The company will aggressively push for more business through the same route. A long term investment in this company is advisable. So I say buy the stock!