AT&T sees the FirstNet buildout strategy as a way to step off the highway of increasing tower costs and obtain the towers needed for the build in ways that are more economical and efficient. That’s what AT&T CFO John Stephens told analysts as the company reported its second quarter financials on Tuesday. The company also gave investors more color on its plans once the Time Warner acquisition closes.
AT&T has about 100 MHz of spectrum deployed in the top 100 markets, according to Stephens. The carrier has about 60 MHz of additional spectrum and plans to deploy all the bands simultaneously with the FirstNet build. “The cost savings from touching the tower only once are significant,” said the executive, according to a Seeking Alpha transcript.
AT&T sees the FirstNet build as a way to change “the curve of increasing tower costs. The build will require equipment installations and new towers,” said Stephens. “We’ve closely watched unit costs and have been focused on creating a diverse community of suppliers and tower companies to increase competition and reduce costs.” That includes studying its options and “looking hard at new relationships.” Stephens said the carrier “is open to new or independent operators who may want AT&T as a customer and support a new model.”
Meanwhile, Inside Towers reported this week the Justice Department has begun initial talks with AT&T and Time Warner officials about possible conditions on their merger. AT&T CFO John Stephens told investors on the earnings call, the company still expects to close the deal by year end, and has the financing set up to do so. “Our goal is to hit the ground running once we receive final approval and build our leadership in the telecom, media, and technology space,” said Stephens, according to Seeking Alpha.
July 27, 2017
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