AT&T today said its capital spending (Capex) will be nearly $21 billion in 2015 against the earlier plan of investing $18 billion.
However, there is no clarity on what percentage of $21 billion will be devoted for wireless infrastructure, broadband, video business, etc.
Earlier, AT&T was considering a Capex of $18 billion in 2015.
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During 2016-2018, Capex will be 15 percent of revenues or lower. AT&T expects increase in revenue in line with GDP growth.
The revised guidance on Capex follows its recent acquisitions of DIRECTV and Mexican wireless properties Iusacell and Nextel Mexico.
Randall Stephenson, AT&T chairman and CEO, said: “With our national retail presence, coast-to-coast TV and mobile coverage, and broadband footprint, we’re positioned like no other to lead the evolution of video and shape the future of the industry.”
AT&T now is the largest pay TV provider in the United States and the world, providing service to more than 26 million subscribers in the United States and more than 19 million customers in Latin America, including Mexico and the Caribbean.
AT&T has 132 million wireless subscribers in the U.S. and Mexico. It offers 4G LTE mobile coverage to nearly 310 million people in the U.S. and expects LTE coverage to 350 million people in its North American service area by the end of the year. AT&T covers 57 million U.S. customer locations with high-speed Internet, and has nearly 16 million broadband subscribers.
AT&T plans to expand its high-speed Internet service to more than 60 million customer locations by the end of 2018. AT&T’s fiber broadband footprint will reach more than 14 million residential and business customer locations. Current GigaPower deployments have exceeded penetration expectations with costs per customer location passed running much lower than original expectations.
AT&T expects its largest revenue streams will be Mobility and Business Solutions (both wireless and wireline); Entertainment & Internet; Consumer Mobility; and International Mobility and Video.