Light Reading
AT&T spends $6 billion on expanding its network in the second quarter.

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
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: Moderator
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...
SReedy
50%
50%
SReedy,
User Rank: Blogger
7/24/2014 | 10:58:35 AM
Re: Brace yourselves....
Well, it looks like they won't be spending it on managed services though. Ericsson is sure doing a lot of backpedaling! After saying it was talking to AT&T and Verizon about outsourcing network operations, Ericsson CEO Hans Vestberg now says it's not gonna happen. http://www.fiercewireless.com/tech/story/ericsson-ceo-says-att-verizon-unlikely-outsource-network-management
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...
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (2) comments


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
LRTV Documentaries
AT&T's New Security Strategy

12|10|14   |   02:36   |   (1) comment


AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
Gardner's Departure a Cautionary Tale
Carol Wilson, Editor-at-large, 12/12/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Upcoming Webinars
Webinar Archive