Comcast and AT&T announce fresh investment plan

mobile-broadband-and-big-dataComcast and AT&T announced fresh investment in telecom infrastructure in the U.S. market based on the passage of tax reforms.

“Comcast expects to spend more than $50 billion over the next five years investing in infrastructure to improve and extend our broadband plant and capacity, and our television, film and theme park offerings,” said Brian L Roberts, chairman and CEO of Comcast NBCUniversal.

Comcast expects to add thousands of new direct and indirect jobs. Comcast will share more details on its Capital expenditure (Capex) during its earnings report on January 24.

Congress approved legislation representing the first comprehensive tax reform in a generation. The President Donald Trump is expected to sign the bill in coming days.

AT&T plans to invest an additional $1 billion in the United States in 2018.

Randall Stephenson, AT&T chairman and CEO, said: “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

AT&T and Comcast also announced special bonus to their employees.

AT&T would pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays, AT&T said.

Comcast would award special $1,000 bonuses to more than one hundred thousand eligible frontline and non-executive employees.

Two other important developments are also expected to fuel investment in infrastructure expansion in the U.S.

FCC (Federal Communications Commission) announced new net neutrality guidelines last week encouraging North American telecom and broadband operators to make more investments in the internet market. FCC also announced auction to enhance broadband coverage in rural America.