AT&T: Network Disclosure Starts To Frame the Lead Issue

AT&T has disclosed that lead-clad cable constitutes less than 10% of its copper network based on strand miles. Two thirds of this cable is buried or in conduit, and the vast majority of the remainder is strung on poles, with only a very small percentage underwater. The “overwhelming majority” of these cables remain in service. In a follow-up conversation, AT&T indicated that these figures encompass all of its potential exposure, including any abandoned cables. While these details don’t put the issue to rest, AT&T believes they provide a frame of reference concerning its potential liability. We continue to believe that AT&T shares are highly undervalued.