Tuesday, July 8, 2014

AT&T to Pick Up Pace This Quarter

There’s been talk about AT&T slowing spending when it comes to their wireless infrastructure deployment while they discuss a merger with DirecTV. Although the company said this deal would not affect their wireless network deployment, RCR Wireless reported otherwise sharing that contractors have been laid off and there was a widespread capital spending freeze in place at AT&T. The future may be getting brighter with analysts and contractors saying AT&T will resume spending this quarter. AT&T spending during the second half should be “quite solid,” according to analyst Michael Genovese of MKM Partners. He said the cuts made during the first half were not as devastating as he thought they were at first, RCR Wireless reported. “I think they were actually pretty limited,” said Genovese. “I think they had to do with new 4G tower builds, but not with outfitting existing towers, and not really so much on the wireline part of the network, just primarily on the wireless side and a little bit of backhaul associated with that.” (Source: RCR Wireless) New tower builds were hit the hardest and it’s unclear whether those workers who were laid off will be brought back on once projects begin again. Hopefully, the analysts and contractors are correct and spending will pick up soon.

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