AT&T has announced a three-year vision to expand its 5G and fiber services across the US, with plans to double its fiber internet availability. The company expects to reach over 50 million locations with fiber by 2029. AT&T aims to return $40 billion to shareholders through dividends and share repurchases over the next three years.
The company’s efforts are driven by industry trends toward high-speed internet, which have already yielded significant customer gains. Annual capital investment is expected to remain around $22 billion during this period.
CEO John Stankey stated that the focus is now on building the largest, highest capacity converged broadband network with the lowest marginal cost in the US. AT&T’s unlimited plans featuring increased hotspot data have driven higher-than-expected wireless subscriber growth in the third quarter.
The company raised its 2024 adjusted earnings per share forecast to $2.20-$2.25, exceeding analysts’ estimates of $2.21 per share. This growth is attributed to its new strategy, which suggests a slightly faster pace than initially anticipated.
AT&T has reported free cash flow of $16.77 billion for the previous fiscal year ended December 2023 and plans to exit its legacy copper network operations by the end of 2029.
Source: https://www.reuters.com/business/media-telecom/att-expects-over-18-billion-free-cash-flow-2027-driven-by-5g-fiber-expansion-2024-12-03