AT&T CEO Randall Stephenson and CFO John Stephens have revealed the latest updates on the telecom operator’s 5G plans.
AT&T has already launched mobile 5G service in parts of 19 cities in the U.S. AT&T is aiming to offer mobile 5G across the nation by early 2020.

The initial focus of AT&T is attracting business customers to its 5G mobile network. The mobile operator believes that 5G’s high speeds and ultra-low latency will benefit the use cases and applications.

The company is working with hospitals, manufacturers and others. AT&T also plans to offer two 5G smartphones in 2019 targeting early adopters. AT&T achieved data speeds faster than 2 Gbps during a recent test on its live 5G network and using a 5G smartphone.

AT&T is aiming to spend $23 billion towards capital expenditure targeting 4G expansion, 5G build outs and fiber networks. AT&T’s capital spend is significantly higher as compared with Verizon Wireless, Sprint and T-Mobile US.

AT&T said it expects to achieve an adjusted net debt-to-EBITDA ratio in the 2.5x range by the end of 2019. The company has already announced $5 billion in asset monetization, against its goal of $6 billion to $8 billion in net asset monetization for the full year.

The company aims to repay 75 percent of the $40 billion it borrowed to acquire Time Warner last year.

AT&T’s WarnerMedia plans to beta launch a subscriber video on demand (SVOD) service – offering content from HBO, Warner Bros and Turner — in Q4 2019, while full launch will be in the first quarter of 2020. The company spends about $14 billion annually on content. It plans to take back some owned-content previously licensed to others and make it available on the upcoming WarnerMedia SVOD service.

AT&T said it expects its wireless service revenues to grow, contributing to the growth in wireless EBITDA in 2019. The Mobility segment represents about half of AT&T’s total EBITDA. Catalysts for growth include post-paid smartphone adoption, the move to higher-ARPU unlimited plans and Cricket subscriber growth.

The company expects its FirstNet build and superior network quality will help it attract and retain customers. AT&T’s FirstNet deployment has more than 600,000 connections across more than 7,250 public safety agencies.