Think 5G is going to blow out 2019 capex? Uh-uh, says AT&T.

Dan Jones, Mobile Editor

November 30, 2018

2 Min Read
AT&T Pegs 2019 Capex Guidance in $23B Range, Despite 5G Push

AT&T is pegging its 2019 capital expenditure guidance in the $23 billion range, even with a heavy push on adding more 5G cities in 2019.

In its October 24 third-quarter earnings, AT&T Inc. (NYSE: T) kept to its 2018 capex predictions at $22 billion. The operator currently plans to launch 5G in 19 cities in 2019, after a initial debut at the end of this year -- what's left of it! -- in parts of 12 US markets. (See AT&T: 5G by End of Year, but No Commercial Launch Date Yet.)

So why isn't AT&T's capex expected to grow with 5G?

AT&T gave a couple of reasons at its analyst day on Thursday:

  • AT&T is expecting to offset the capital intensive network with new revenue from WarnerMedia, LLC and its Xandr advertising unit.

  • AT&T has been building its FirstNet public safety network all year. The company is "six months ahead of schedule," according to communications unit CEO John Donovan. So, AT&T says it is close to a $1.6 billion payment from the federal government with more to follow. (See AT&T on Track With 5G, Starts FirstNet Build.)

The 700MHz FirstNet build is important to watch in terms of AT&T's 5G and LTE services. The tower teams will add support for what Donovan calls "fallow spectrum" in the mid-band with "5G-ready" radios. Namely, AT&T can fire up service on the AWS-3 bands (1695-1710 MHz/1755-1780 MHz/2155-2180 MHz) and WCS band (2.3GHz). (See AT&T Gets WCS Approval, Adds 4G Markets and FCC Mid-Band Auction Nears $45B in Bids.)

Why does this matter? Well, as AT&T execs have said before AT&T isn't purely focused on using millimeter wave high-band spectrum for 5G. So WCS and AWS-3 "fallow" spectrum could form part of a mid-band 5G backbone for Ma Bell eventually. (See AT&T: We're Not Only Focused on mmWave for 5G.)

— Dan Jones, Mobile Editor, Light Reading

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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