uploads///Telecom ATT Q Mexico Phone Net Additions

Why AT&T Acquired More Spectrum in Mexico


Aug. 24 2018, Updated 7:31 a.m. ET

AT&T and more spectrum in Mexico

AT&T (T) is looking forward to expanding its operations in Mexico. It placed a $76 million bid to acquire ~80 MHz (megahertz) of spectrum in the 2.5 GHz (gigahertz) band in an auction carried out by the Mexican government. The spectrum is suited for 5G (fifth-generation) mobile networks.

According to AT&T’s CFO John Stephens, the company intends to fund its spectrum bid in Mexico with money from the sale of some of its broadcast spectrum and data center assets.

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AT&T’s Mexican wireless net additions in Q2 2018

In the second quarter, AT&T’s total revenues in Mexico rose ~4.8% YoY (year-over-year) to $697 million. It added 756,000 wireless net customers there compared to 476,000 in the second quarter of 2017. Its total Mexican wireless customers rose ~25.3% YoY to ~16.4 million at the end of the second quarter. At the end of June, AT&T’s wireless footprint in Mexico covered ~100 million PoPs (points of presence) with 4G (fourth-generation) LTE (Long-Term Evolution).

By concentrating on the international segment, AT&T is on the plus side since it offsets the weakness in its domestic wireless segment. Smaller rivals Sprint (S) and T-Mobile (TMUS) are trying to attract customers from other wireless service providers such as AT&T and Verizon (VZ).

AT&T reported consolidated total revenue of $39 billion in the second quarter, a ~2.1% reduction YoY. In comparison, Verizon’s total revenue rose ~5.4% YoY to $32.2 billion, while T-Mobile’s rose ~3.5% YoY to $10.6 billion. Sprint’s total revenue decreased ~0.4% YoY to $8.1 billion during the same quarter.


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