uploads///Telecom ATT Q Mexico Phone Net Additions

Why AT&T Acquired More Spectrum in Mexico

By

Aug. 24 2018, Updated 6:31 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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market RealistLogo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.