How Did AT&T Fare in 3Q17?

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Part 7
How Did AT&T Fare in 3Q17? PART 7 OF 10

What You Should Know about AT&T’s 2017 Capex Budget

AT&T is spending large on capex

AT&T (T) has been investing largely in capital expenditures, or capex, to procure additional spectrum for future use as well as to improve its network. AT&T spent $5.25 billion on capex in 3Q17, compared with $5.81 billion in 3Q16, as it continues to focus on integrated wireless and wireline business services.

According to a report from FierceWireless on October 30, 2017, “Looking to next year, AT&T’s deployment of 60 MHz of fallow spectrum and the deployment of 600 MHz spectrum should drive additional spending on top of ongoing network densification activity.”

What You Should Know about AT&#038;T&#8217;s 2017 Capex Budget

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AT&T’s management had previously highlighted that the timing of FirstNet reimbursements and expenditures could cause its fiscal 2017 FCF (free cash flow) to come in at the low end of the $18.0-billion range.

Expected capex investments in 2017

AT&T’s management expects to spend ~$22.0 billion on capex in fiscal 2017, compared with $22.9 billion in 2016. By comparison, Verizon Communications (VZ) expects its capex for fiscal 2017 to be at the lower end of its previously guided $16.8 billion–$17.5 billion range, while T-Mobile (TMUS) expects its cash capex to be in the range of $4.8 billion–$5.1 billion, excluding capitalized interest.

Sprint (S) expects its cash capex to be in the $3.5 billion–$4.0 billion range, excluding devices leased through indirect channels in fiscal 2017 (ended March 2018).


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