AT&T Capex to grow in the third quarter

AT&T data plans
Telecom network operator AT&T said on Tuesday it expects its investments towards Capex (capital spending) in the third quarter of 2015 to increase from second-quarter levels.

The investment of AT&T was $4.5 billion during the second quarter and $7.2 billion in the second half of 2015. The increase in AT&T investment over the year-ago quarter was due to its focus in its high-quality network and customers.

It plans to own and operate 4G LTE network in Mexico with plans to cover 100 million POPs with a calling plan footprint of 400 million POPs across North America.

In January 2015, AT&T said its Capex for 2015 will decrease 21 percent to $18 billion from $21 billion in 2014.

For comparison, Verizon will be spending $18 billion towards Capex.

AT&T today said it expects to add more than 2 million subscribers — postpaid and prepaid — during the third quarter of 2015. During the second quarter of 2015, AT&T added 2.1 million wireless subscribers.

The No. 2 wireless carrier in the U.S. also expects to report positive U.S. net subscriber additions for the recently acquired satellite TV provider DirecTV.

In August, AT&T said that it expected revenue, earnings and free cash flow to grow through 2018 following its purchase of DirecTV and wireless expansion in Mexico.

AT&T also said it would change the methodology DirecTV used to count its commercial subscribers to conform to its practices, which will reduce DirecTV’s total subscriber count by 918,600 at the close of the deal in July.

Reuters reported that AT&T may take a charge estimated at $1.1 billion related to DirecTV’s assets in Venezuela, the company disclosed Friday in a U.S. regulatory filing. AT&T said it is evaluating whether to use a less preferential Venezuela currency exchange rate to value more than $1.1 billion in DirecTV assets in that South American country.

Baburajan K
[email protected]