AT&T to step up investment in 2022, CFO tells shareholders
AT&T intends to step up investment in 2022 to support its fibre rollout and mid-band 5G spectrum deployment CFO Pascal Desroches told shareholders on Monday.
The CFO spoke at the Deutsche Bank media, internet and telecom conference where he provided an update on AT&T’s growth strategy ahead of the WarnerMedia transaction closing.
The investment in growth, combined with additional investment to support the ongoing rationalisation of AT&T’s business wireline portfolio, is expected to drive year-on-year increase in capital investment.
The company adds that it expects around $600 million in headwinds from its 3G shutdown costs.
Desroches also said that AT&T intends to become the best broadband provider in the US, underpinned by a “best-in-class network” with fibre at its foundation and integrated with wireless.
The firm expects to drive additional wireless subscriber growth by maintaining its go-to-market strategy, increasing penetration in underserved areas and cross-selling wireless services.
He added that AT&T will continue to optimise its cost structure through ongoing transformation initiatives with opportunities to drive an additional $2.5 billion in cumulative cost savings over the next two years to reach its goal of $6 billion in run-rate cost savings by 2023.
The company maintains a total-return-oriented capital allocation strategy with a focus on investing for growth with capital investment in the $24 billion range for 2022 and 2023.
At the same time, AT&T will deliver returns to stakeholders via “an attractive dividend near the top of the Fortune 500”.