AT&T to make $22 billion investment towards Capex in 2016

AT&T data plans
Telecom network operator AT&T today said it will be making an investment of nearly $22 billion towards Capex (capital spending) in 2016 against $20.7 billion in 2015.

In 2014, AT&T’s spending towards Capex was $21.4 billion.

Verizon, the main rival of AT&T, had lowered its Capex for 2016. Sprint, a SoftBank-promoted telecoms, will be investing nearly $5 billion during the current fiscal i.e. till March 31, 2016.

The capital spending plan of AT&T included investment earmarked for DIRECTV.

HIGHLIGHTS OF AT&T EARNINGS

# revenues of $42.1 billion (+22 percent) in Q4
# 2015 revenues $146.8 billion (+10.8 percent)
# added 2.8 million wireless users
# 4G LTE network coverage expands to 355 million POPs
# Postpaid churn at 1.18 percent
# added 638,000 users in Mexico
# Business solutions service revenues dip
# added 214,000 DIRECTV users in US
# added 192,000 IP broadband users

Randall Stephenson, AT&T chairman and CEO, said: “Our DIRECTV integration is going well, and the customer response to our new integrated mobile and entertainment offers is strong. Throughout this year, we plan to launch a variety of new video entertainment packages that give customers even more choices.”

The good news is that AT&T will be aiming to post double digit growth in revenue for 2016. The bad news is that AT&T’s Capex spending for the current year will not be growing significantly despite the acquisition of DIRECTV and telecom assets in Mexico.

Baburajan K
editor@telecomlead.com

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