Chart reading is not particularly useful for investors seeking value, but there may be one exception. When AT&T Inc. (NYSE:T) is stuck in a trading range with nowhere to go, it makes sense to look for an entry point for this dividend-paying telecom. The blockbuster FirstNet public safety network deal over 25-years is another positive development for T stock.

The stock trades at a price-to-earnings ratio below 20x and the AT&T dividend yields 4.7%. By comparison, Verizon Communications Inc. (NYSE:VZ) is valued at 15 times earnings, but pays the same dividend yield.

The difference between the two companies is that AT&T stock is about to embark on a transformation towards content. Its acquisition of Time Warner Inc (NYSE:TWX) will hurt cash flow and raise its debt levels in the near-term.

Fortunately, Time Warner is a cash cow and AT&T expects the buyout will add positively to cash flow. It will also cut costs of around $1 billion over the next three years. This includes corporate and procurement costs.

AT&T Stock and Internet Privacy Rule Reversal

The government’s decision to reverse the internet privacy rules is a risk factor for T stock. Although the telecom giant may generate more revenue from selling privacy data, consumers may revolt.

AT&T, Verizon Communications Inc. (NYSE:VZ) and Comcast Corporation (NASDAQ:CMCSA) all said on Mar. 31 that they would not sell their customers’ browsing history. This is a relief for investors and customers. If these internet service providers do see the information, customers could launch a class-action lawsuit. This will have a negative impact on operations, future revenue expectations and the stability of the business if consumers cancel their services.

Despite the statement, ISPs did spend millions lobbying against net neutrality. Lobbying spending totaled $42 million in 2014. The opposition continued as recently as January 2017.

In principle, consumers may resent having their privacy data taken, when they are paying companies like AT&T for Internet services. Conversely, in return for free access to services, people willingly give up their privacy on sites like Facebook, Inc.  (NASDAQ:FB) or Alphabet Inc.’s (NASDAQ:GOOGL).

Bottom Line on T Stock

Despite all the uncertainties, one thing is certain: the AT&T dividend. The company has raised its dividend consistently, since 2009.

Furthermore, in its FirstNet contract, AT&T will spend $40 billion over 25 years to add towers and antennas. The network will give emergency responders spectrum priority. It will also accommodate consumer and commercial services.

The change in internet privacy rules will not likely lead to a loss in customers. Other ISP providers will sell this data. In effect, the only true pressure on AT&T stock is competition from other providers. Wireless service is a competitive space, and affordable rates from Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS) will make life harder for T stock.

ISPs will take center stage as debates about net neutrality and privacy go on, but the AT&T dividend will remain strong. At around 4.7%, T stock is appealing to income investors and with Time Warner under the AT&T umbrella and a 25-year FirstNet deal, AT&T is still a great investing idea.

As of this writing, Chris Lau did not hold a position in any of the aforementioned securities.