If there was one thing AT&T's (NYSE: T) fourth-quarter earnings report highlighted, it is just how few people are still actually using traditional telephones. The wireless carrier took a $24 billion charge in goodwill related to its legacy landline business in the quarter, while also taking a $1.4 billion asset abandonment charge tied to wireline conduits no longer needed to support its copper and fiber networks.

Since narrowing its business focus last year by spinning off its entertainment unit into Warner Bros Discovery, AT&T has committed to growing its wireless and broadband internet services. It's going to be spending about $24 billion in capital expenditures this year, about the same as in 2022, and with its new Gigapower joint venture with BlackRock launched in December, fiber could be another big part of the picture in the future.

Yet mobile remains AT&T's biggest revenue generator, accounting for 69% of quarterly sales, or $21.5 billion. It may not be the fastest-growing segment, but it is the straw that stirs the drink and is why investors should be paying attention.

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Source Fool.com