Will the financial decisions of AT&T generate future growth? According to Schwab, they project AT&T will suffer a negative growth of 5% whereas the industry will experience a 6% growth and the market 13%.
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In sum, making financial decisions has an element of risk involved. In this case, hopefully the benefits of these transactions far outweigh possible concerns. Obviously, AT&T's main effort was to diligently overhaul their financial structure and their restructuring effort reduced AT&T's net debt (Annual Report 2002). To maintain and magnify AT&T's financial strength, the company is taking a monitor their ongoing cost and capital structure. AT&T will continue to moderate their spending going forward. In fact, CNN just flashed news that AT&T will spend $500 million to enhance their customer service. From CNN, "AT&T Chairman & CEO David Dorman today announced wide-ranging programs underway to set a new industry benchmark for improving customer service, and the deployment of global integrated networking solutions that includes secure access to AT&T services from WiFi (Wireless Fidelity) hot spots at airports and hotels" (CNN.com).