What's Happening?
AT&T has reported robust financial results for the third quarter, highlighting significant progress in its broadband and mobility sectors. The company posted revenues of $30.7 billion and a net income
of $9.7 billion, a substantial increase from the previous year's loss, largely due to gains from the sale of its DIRECTV investment. The telecommunications giant is focusing on expanding its infrastructure, with plans to invest heavily in fiber and spectrum. AT&T added 405,000 postpaid phone net additions and saw a 2.3% year-over-year increase in mobility service revenues. The company also reported a 16.8% rise in consumer fiber broadband revenues, adding 288,000 new fiber customers. CEO John Stankey emphasized the company's achievements in broadband expansion, noting the highest total broadband net additions in eight years.
Why It's Important?
AT&T's strategic investments in fiber and spectrum are crucial for maintaining its competitive edge in the telecommunications industry. The planned acquisition of Lumen Technologies' fiber assets and EchoStar's spectrum will significantly enhance AT&T's network capabilities, allowing for improved 5G performance and faster growth in Internet Air services. These expansions are expected to support AT&T's long-term goal of building a high-performance network capable of delivering traffic at the lowest marginal cost. The company's focus on infrastructure development is likely to benefit consumers through enhanced service offerings and could potentially lead to increased market share in the broadband and wireless sectors.
What's Next?
AT&T is set to close its acquisition of Lumen Technologies' fiber assets in early 2026, with plans to integrate these into a new subsidiary, NetworkCo. The company also aims to finalize the purchase of EchoStar's spectrum by the first half of 2026. These acquisitions are expected to temporarily increase AT&T's net debt-to-adjusted EBITDA ratio, but the company anticipates long-term accretive benefits. As AT&T continues to deploy its newly acquired spectrum, it plans to cover nearly two-thirds of the U.S. population with midband licenses by mid-November, further enhancing its 5G network capabilities.
