Thursday, June 26, 2014

AT&T’s Bid for DirecTV Negatively Impacts the Tower Industry


When consumers first heard rumblings that AT&T was looking to acquire DirecTV, questions arose about how this would affect their day to day lives in the tower industry. However, at the 2014 Wireless Infrastructure Show AT&T’s Network Operations President, Bill Smith, said, “I don’t think anybody should be concerned that this is a left turn by AT&T with respect to our investment in our network.” Well, concern is growing and rightly so. RCR Wireless reported that, “a leading AT&T contractor released 15 construction managers and project coordinators last Friday, and transferred five more to a Sprint project. Earlier this month, dozens of people were laid off by a major integration company, according to Wireless Estimator. At least one contractor has warned investors about the AT&T spending freeze and its potential impact, according to Michael Genovese.” The Wall Street analysts also reported that there was bad news from AT&T suppliers. Michael Genovese of MKM Partners told his clients that a “new widespread capital spending freeze in place at AT&T,” could impact vendors, and Jefferies & Company’s George Notter said his contacts were reporting sharp declines in revenue from AT&T. (Source: RCR Wireless)

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