AT&T Unveils Ambitious 3-Year Plan to Dominate 5G and Fiber Markets
A Bold Vision for the Future
AT&T has set its sights on a remarkable future, announcing plans to generate over $18 billion in free cash flow by 2027. This ambitious goal is part of a comprehensive three-year strategy to expand its 5G and fiber services across the United States.
Shares Soar on the News
Investors reacted positively to the news, driving AT&T’s shares up 2.3% in premarket trading.
Doubling Down on Fiber Internet
At the heart of AT&T’s plan is a commitment to double its fiber internet availability, offering customers bundled discounts on high-speed fiber data and wireless phone services. This move aligns perfectly with industry trends toward high-speed internet, which have already yielded significant customer gains.
A Fiber Network Like No Other
By 2029, AT&T aims to reach an impressive 50 million locations with its fiber network, a significant increase from its current 28.3 million fiber passings.
Wireless Subscriber Growth Soars
The company’s unlimited plans, featuring perks like increased hotspot data, have driven higher-than-expected wireless subscriber growth in the third quarter.
Returning Value to Shareholders
AT&T plans to return more than $40 billion to shareholders over the next three years through dividends and share repurchases, a clear demonstration of its commitment to creating value for investors.
Investing in the Future
Annual capital investment is expected to remain around $22 billion during this period, a testament to AT&T’s dedication to driving growth and innovation.
Raising the Bar on Earnings
The company has raised the lower end of its 2024 adjusted earnings per share forecast to between $2.20 and $2.25, exceeding analysts’ estimates of $2.21 per share.
A Competitive Landscape
In September, rival T-Mobile announced its own ambitious plans, expecting adjusted free cash flow between $18 billion and $19 billion in 2027. AT&T’s forecast annual service revenue growth in the low-single-digit range from 2025 to 2027 sets the stage for a competitive battle in the industry.
A Bright Future Ahead
With its sights set on dominating the 5G and fiber markets, AT&T is poised for a bright future. As the company continues to execute its three-year plan, investors and customers alike will be watching with great interest.
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