AT&T Enhances Spectrum Position Following FCC Auction 102
June 17 2019 - 6:01PM
Business Wire
Company now has more than 630 MHz of nationwide
mmWave spectrum as it prepares to further its leadership position
in mobile 5G
AT&T Inc.* is the winning bidder for spectrum licenses
covering more than 98% of the U.S. population following the close
of FCC Auction 102. The company won 24 GHz spectrum in 383 Partial
Economic Areas (PEAs) for a nationwide average of 254 MHz. All of
the licenses won were in the more valuable upper 500 MHz portion of
the 24 GHz band, giving AT&T stronger nationwide coverage and
additional spectrum depth and capacity in many top markets where
demand is often greatest. In the top 10 markets alone, AT&T won
nearly 286 MHz on average, including 300 MHz in 8 of those
markets.
AT&T will use the spectrum to bolster its mobile 5G
strategy. AT&T was the first U.S. wireless carrier to introduce
mobile 5G service. The company’s 5G service is currently available
in parts of 19 cities – more than any other wireless carrier – with
plans to reach parts of 29 cities by the end of 2019. In the first
half of 2020, the company expects to have the best combination of
mobile 5G, providing high speeds and low latency service over
mmWave spectrum and nationwide 5G service over “sub-6”
spectrum.
“We’re leading the nation in mobile 5G deployment and the large,
contiguous block of spectrum we won in Auction 102 will be critical
to maintaining that leadership,” said Scott Mair, president of
AT&T Operations. “We’ve already been recognized for having the
nation’s fastest1 and best2 wireless network, and by further
strengthening our spectrum position, we intend to build on our
success. I’d like to congratulate and thank the FCC on the
conclusion of another successful auction.”
The licenses it won cover all top 50 PEAs and 99 of the top 100
PEAs. When added to the mmWave spectrum AT&T already holds in
the 39 GHz band, AT&T’s average spectrum depth in mmWave
increased by two-thirds to more than 630 MHz nationwide.
The company spent about $980 million in the auction. This
purchase of high-quality spectrum does not change AT&T’s 2019
guidance for free cash flow, net asset monetization or debt
leverage ratio. The company continues to expect $6-$8 billion in
proceeds from asset monetization, net of spectrum purchases and
other asset acquisitions. After reaching the 2.5x range for
net-debt-to-adjusted-EBITDA, the company will also look at using a
portion of its free cash flow after dividends to evaluate share
buybacks and retire shares it issued in conjunction with the Time
Warner acquisition.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results might differ
materially. A discussion of factors that may affect future results
is contained in AT&T’s filings with the Securities and Exchange
Commission. AT&T disclaims any obligation to update and revise
statements contained in this news release based on new information
or otherwise.
This news release may contain certain non-GAAP financial
measures. Reconciliations between the non-GAAP financial measures
and the GAAP financial measures are available on the company’s
website at https://investors.att.com.
*About AT&T
AT&T Inc. (NYSE:T) is a diversified, global leader in
telecommunications, media and entertainment, and technology. It
executes in the market under four operating units. WarnerMedia is a
leading media and entertainment company that creates and
distributes premium and popular content to global audiences through
its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV,
CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim,
Turner Classic Movies and others. AT&T Communications provides
more than 100 million U.S. consumers with entertainment and
communications experiences across TV, mobile and broadband
services. Plus, it serves nearly 3 million business customers with
high-speed, highly secure connectivity and smart solutions.
AT&T Latin America provides pay-TV services across 11 countries
and territories in Latin America and the Caribbean, and is the
fastest growing wireless provider in Mexico, serving consumers and
businesses. Xandr provides marketers with innovative and relevant
advertising solutions for consumers around premium video
content and digital advertising through its AppNexus
platform.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc. Additional information is available
at about.att.com. © 2019 AT&T Intellectual Property. All rights
reserved. AT&T, the Globe logo and other marks are trademarks
and service marks of AT&T Intellectual Property and/or AT&T
affiliated companies. All other marks contained herein are the
property of their respective owners.
______________________________1 Based on analysis by Ookla® of
Speedtest Intelligence® data average download speeds for Q1 2019.2
Based on GWS OneScore Sept. 2018. Excludes crowdsourced
studies.
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McCall ButlerAT&T Corporate and Financial
CommunicationsPhone: 470-773-5704Email: mb8191@att.com
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