& cplSiteName &

AT&T: Capex Freeze? What Capex Freeze?

Dan Jones
7/23/2014
50%
50%

AT&T has spent big on capex so far this year as it draws towards the end of its 4G LTE deployment in the US.

AT&T Inc. (NYSE: T) CFO John Stephens said Wednesday evening on the operator's second-quarter earnings call that Ma Bell had $6 billion in capital expenses in the second quarter of 2014. Despite this, the operator still says that it will spend $21 billion in capex for 2014.

"It's going to be hard work," Stephens said of the $21 billion target. AT&T, however, has been front-loading a lot of its capital spending in the early part of the year.


Hey big spender, spend a little time with 4G. Check out our dedicated LTE content channel here on Light Reading.


AT&T is now very close to completing its 4G LTE buildout in the US, which will cover 300 million potential customers. The total potential customers covered now stands at 290 million, and the operator expects to be done this summer.

Stephens, however, essentially said on the call that rumors of an AT&T capex "freeze" have been greatly exaggerated. (See AT&T Investing in LTE Video Despite Capex 'Freeze'?.)

Major rival Verizon Communications Inc. (NYSE: VZ) is guiding $16.5 million to $17 million in capital expenditure for 2014. (See Verizon Continues 4G LTE Capacity Spend in Q2 .)

— Dan Jones, Mobile Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DanJones
50%
50%
DanJones,
User Rank: Blogger
7/24/2014 | 3:51:10 PM
Re: A few thoughts...
Does this CAPEX include the ALU's and Fujitsu's Network Cloud deal?

 

Not much if any, deployment starts late this year.
bosco_pcs
50%
50%
bosco_pcs,
User Rank: Light Sabre
7/24/2014 | 1:02:55 PM
A few thoughts...
A few thoughts...

Does this CAPEX include the ALU's and Fujitsu's Network Cloud deal?

Ray, my bet is vendors don't mind diversifying but the international scene is more competitive especially from the Asian guys (hint! hint!)

Telecom is always lumpy anyway, feast or femine!
KBode
50%
50%
KBode,
User Rank: Light Sabre
7/24/2014 | 12:41:22 PM
Re: Brace yourselves....
Yes, and I think what wireline investment they do plan may be on hold as they try to sell state lawmakers on the idea that they should be unburdoned from regulations requiring they continue to provide POTS and DSL to customers in territories they no longer want. AKA the "IP transition" where there's significantly more wireless as a rural stopgap measure and significantly less rural DSL.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
7/24/2014 | 12:35:14 PM
Re: Brace yourselves....
It seems based on a lot of what AT&T is saying to the FCC and the states that their investment is in the wireless access approach. And they said today there is still plenty of room for growth in U-Verse subs based on where that's deployed now. So there may not be much incentive for wireline investment. 
KBode
50%
50%
KBode,
User Rank: Light Sabre
7/24/2014 | 11:49:40 AM
Re: Brace yourselves....
It's not going to the Gigapower 1 Gbps home initiative, either. They keep insisting that effort will have no meaningful impact on CAPEX. Wireline investment continues to drop year over year...
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
7/24/2014 | 7:58:49 AM
Brace yourselves....
It's white-knuckle time for the vendors that rely heavily on AT&T and VZON.... some now wishing they'd spread their international wings a bit sooner/quicker, I bet...
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Nokia Plays It Smart With Major Mobile Devices Brand Deal
Iain Morris, News Editor, 5/18/2016
Ingenu Revs Up IoT Rhetoric
Iain Morris, News Editor, 5/18/2016
Google Doubles Down on Machine Learning, AI
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.