AT&T Enhances Spectrum Position Following FCC Auction 102

17 Jun 2019

DALLAS--(BUSINESS WIRE)--AT&T Inc.* is the winning bidder for spectrum licenses covering more than 98% of the U.S. population following the close of FCC Auction 102. The company won 24 GHz spectrum in 383 Partial Economic Areas (PEAs) for a nationwide average of 254 MHz. All of the licenses won were in the more valuable upper 500 MHz portion of the 24 GHz band, giving AT&T stronger nationwide coverage and additional spectrum depth and capacity in many top markets where demand is often greatest. In the top 10 markets alone, AT&T won nearly 286 MHz on average, including 300 MHz in 8 of those markets.

AT&T will use the spectrum to bolster its mobile 5G strategy. AT&T was the first U.S. wireless carrier to introduce mobile 5G service. The company’s 5G service is currently available in parts of 19 cities – more than any other wireless carrier – with plans to reach parts of 29 cities by the end of 2019. In the first half of 2020, the company expects to have the best combination of mobile 5G, providing high speeds and low latency service over mmWave spectrum and nationwide 5G service over “sub-6” spectrum.

“We’re leading the nation in mobile 5G deployment and the large, contiguous block of spectrum we won in Auction 102 will be critical to maintaining that leadership,” said Scott Mair, president of AT&T Operations. “We’ve already been recognized for having the nation’s fastest1 and best2 wireless network, and by further strengthening our spectrum position, we intend to build on our success. I’d like to congratulate and thank the FCC on the conclusion of another successful auction.”

The licenses it won cover all top 50 PEAs and 99 of the top 100 PEAs. When added to the mmWave spectrum AT&T already holds in the 39 GHz band, AT&T’s average spectrum depth in mmWave increased by two-thirds to more than 630 MHz nationwide.

The company spent about $980 million in the auction. This purchase of high-quality spectrum does not change AT&T’s 2019 guidance for free cash flow, net asset monetization or debt leverage ratio. The company continues to expect $6-$8 billion in proceeds from asset monetization, net of spectrum purchases and other asset acquisitions. After reaching the 2.5x range for net-debt-to-adjusted-EBITDA, the company will also look at using a portion of its free cash flow after dividends to evaluate share buybacks and retire shares it issued in conjunction with the Time Warner acquisition.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company’s website at https://investors.att.com.

*About AT&T

AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim, Turner Classic Movies and others. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves nearly 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV services across 11 countries and territories in Latin America and the Caribbean, and is the fastest growing wireless provider in Mexico, serving consumers and businesses. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its AppNexus platform.

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2019 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

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1 Based on analysis by Ookla® of Speedtest Intelligence® data average download speeds for Q1 2019.
2 Based on GWS OneScore Sept. 2018. Excludes crowdsourced studies.

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