AT&T entered the second quarter with a clear goal of strengthening its position as a leader in wireless and optical connectivity, and the results suggest that it is succeeding in executing on that strategy. The company was able to increase revenue and earnings year-over-year, saw solid growth in key segments, and confirmed its strong cash generation capability. The mobile division and expanding fibre network remain the drivers, while structural weaknesses in Business Wireline remain.

AT&T $T's outlook for the years ahead relies on positive momentum from the enacted tax legislation, which will allow the company to realize significant savings in the billions of dollars. These are to be directed not only to accelerate investment in fiber optic infrastructure, but also to bolster pension reserves and share repurchases. The long-term strategic plan envisions covering up to 60 million locations with high-speed fiber optics by the end of the decade, with revenue and profitability growth…