- AT&T U-Verse
AT&T U-verse is the brand of fiber-based triple-play telecommunications offerings from AT&T that includes broadband internet, telephone, and video services. After last year's acquisition of DirecTV, the largest satellite TV provider nationwide, AT&T has been phasing out its U-verse subscriptions and pushing customers towards DirecTV. The shift is part of a cost savings effort by AT&T and an attempt to capitalize on the DirecTV brand. Satellite TV has lower hardware and programing costs than fiber-based TV, so the more customers AT&T switches from U-verse to DirecTV, the more money the company will save. According to CFO John Stephens, content is roughly $17 more expensive to provide for U-verse customers than for DirecTV customers. To redirect customers, AT&T has stopped building U-verse set-top boxes, and is coaxing prospective customers towards satellite options.
The company's efforts to switch customers are reflected in its recent financial reports. In the second quarter of 2016, AT&T gained 342,000 new satellite TV subscribers and lost 391,000 U-verse TV subscribers. The transition is part of a larger effort by AT&T to combine its services into a single entertainment hub, with internet, satellite TV, and wireless in one home device.