Wall Street expecting caution from AT&T

AT&T is set to report second quarter earnings Wednesday, and Wall Street observers already are saying they are expecting the telco giant to post a more rapid decline in landline customers, and also possibly lower earnings guidance for the rest of this year. Telecom industry observers were expecting AT&T and other telcos to show more weakness earlier in the year, and while that arguably did not happen to the degree anticipated, the economy in general has become only more unhinged, and landlines--once lifelines--are increasingly considered to be a primary victim of consumers' needs to tighten their spending.

If AT&T indeed takes a cautious tone concerning the rest of the year, the last two quarters of 2008 will be watched very closely. Will sales of the 3G iPhone perk up the next quarter, and could continued success with U-verse help toughen the telco against inevitable landline decline?

For more:
- check out this report at The Wall Street Journal