Telecom network operator AT&T today said its capital investment (Capex) was $5.6 billion in the second quarter of 2016.
The company indicated that its Capex will be $22 billion for 2016.
AT&T’s consolidated revenues in the second quarter reached $40.5 billion (+22 percent) largely due to the July 24, 2015 acquisition of DIRECTV.
AT&T made a profit of $3.4 billion in Q2 2016 against $3.1 billion in the year-ago quarter.
AT&T said its mobile data traffic increased 150,000 percent during 2007 – 2015. AT&T is now expecting 10x traffic growth by 2020.
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AT&T CEO Randall Stephenson said: “Cost synergies are ahead of target, we’ve added nearly 1 million DIRECTV subscribers since the acquisition, and our new video streaming services are scheduled to roll out later this year. We plan to serve every segment of the video industry and offer customers their favorite content virtually wherever and whenever they want it.”
Thanks to its investment in DIRECTV, AT&T said it’s on track to save $1.5 billion+ run rate by end of year and $2.5 billion+ run rate by end of 2018. The company’s strategies related to Digital First, automating and streamlining operations, exiting less profitable lines of business will assist AT&T to make more profit.
AT&T investment
AT&T aims to save $3 billion from making investment in virtualized network with software. Its investment in software-defined networks (SDN), standardized hardware with open-source software will also drive the company’s towards to enhance revenue growth.
AT&T focused on expanding the company’s network assets including making investment in 4G LTE and network densification. AT&T has 380 million 4G LTE POPs in North America. It is making investment in fiber deeper into network.
WCS and AWS bands will be deployed over the next several years. It is also making investment in 2G and 3G spectrum refarming and acquisition Software-defined Network. AT&T is upgrading traditional architecture with flexible, dynamic, intelligent network that can rapidly adjust and deliver next-generation services.
Baburajan K
editor@telecomlead.com
