AT&T has recently received approval to discontinue copper telephone and DSL service in parts of rural Oklahoma, signaling the company’s continued push to eliminate these services across much of its service area by 2029. This move has raised concerns among critics who argue that AT&T is prioritizing shareholder returns over the needs of rural communities.
Instead of investing in the necessary infrastructure upgrades, such as replacing outdated copper lines with fiber optic cables, AT&T has announced plans to return over $40 billion to shareholders through stock buybacks and dividends over the next three years. This decision highlights a troubling trend where corporations prioritize short-term financial gains for investors over long-term investments in essential services and infrastructure.
This is not the first time AT&T has prioritized shareholder returns over the needs of its customers and the communities it serves. Following the 2017 corporate tax cuts, AT&T announced plans to spend $30 billion on stock buybacks while simultaneously reducing capital investments and cutting thousands of jobs.
This pattern of behavior raises serious concerns about the company’s commitment to providing reliable and affordable telecommunications services, particularly in rural areas. Access to high-speed internet is increasingly critical for education, healthcare, and economic development, and the lack of reliable broadband access in rural areas exacerbates existing inequalities.
It is crucial for policymakers to hold corporations accountable and ensure that they prioritize the needs of their customers and the communities they serve. Allowing companies to prioritize shareholder returns over essential public services undermines the principles of responsible corporate citizenship and has detrimental consequences for individuals and communities across the country.