AT&T Highlights Mexican Ambitions

AT&T says that it is heavily focused on its recent Mexican acquisitions into its portfolio in 2015 and beyond.

Executives at AT&T Inc. (NYSE: T) talked about their plans for 2015 on the operator's fourth-quarter earnings call Tuesday. As well as DirecTV Group Inc. (NYSE: DTV), the acquisitions of Iusacell and Nextel Mexico are front and center for AT&T. (See AT&T to Buy Nextel Mexico for $1.9B and AT&T Names Iusacell CEO, Closes Acquisition.)

In fact, AT&T made it clear on the call that integrating these properties is among its major tasks for the next couple of years. Analysts on the call asked about the possibility of other foreign acquisitions and the AT&T CEO made it clear that the operator already has plenty on its plate with the integration work that needs to be done.

"Building out Mexico will be a full court press for the next couple of years," said Stephenson. "We will now have the ability to expand our network directly into Mexico building one seamless network that spans 400 million people."

The foreign affairs, however, don't mean that AT&T has taken its eye off its LTE build in the US in 2014. Stephenson says that the 4G network now covers more than 300 million in the US.

Want to know more about 4G LTE? Check out our 4G LTE channel here on Light Reading.

"We have re-engineered our mobile network and we now deliver the strongest LTE signal in the US," Stephenson claimed on the call.

AT&T says it spent $21.4 billion on capex for the year and $4.4 billion for the quarter. The operator has previously described that as a peak and expects capital expenditures to be in the $18 billion range for 2015. (See AT&T to Buy Iusacell, Plans Lower Capex For 2015.)

The operator added 1.9 million new connections for the quarter but, like rival Verizon, is experiencing more churn in the competitive US market. Verizon added 2.1 million connections over the same period.

AT&T's strong push into the connected car market is starting to pay off though, as 800,000 of the new connections were cars, while 1.3 million were devices.

AT&T posted a net loss of $4 billion for the quarter -- or $0.77 a share -- because of rising pension costs. Excluding these items, EPS was $0.55. Revenue grew 3.8% to $34.4 billion.

— Dan Jones, Mobile Editor, Light Reading

Joe Stanganelli 1/28/2015 | 11:02:44 PM
Re: Throttle throttle Ah, if only Sprint could dominate the connected car market!  ;)
nasimson 1/28/2015 | 10:59:37 PM
Re: Throttle throttle Yes Joe. There will be a fair usage policy of 10,000 kms per month. You go over and above, your speed will be throttled.
nasimson 1/28/2015 | 10:58:01 PM
38% of new connections ... > AT&T's strong push into the connected car market is starting
> to pay off though, as 800,000 of the new connections were cars,
> while 1.3 million were devices.

38% of new connections are cars. Thats an impresive share coming from a relatively new segment. Thats low churn and stable ARPUs. Since Americans love their cars, the connected car phenomenon is only set to grow!
Joe Stanganelli 1/28/2015 | 10:46:03 PM
Throttle throttle With AT&T making such strong headway into the connected car market, does that mean that if I drive too much AT&T will force my car to go slower?  *rim shot!*
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