AT&T Inc. today announced a sweeping multi-year strategic plan focused on expanding its 5G and fiber footprint and boosting shareholder returns. The announcement, made ahead of the company’s 2024 Analyst & Investor Day presentation, highlights AT&T’s commitment to becoming the leading connectivity provider in America.
“We’re putting customers first,” said John Stankey, AT&T CEO. “Our plan expands the country’s largest fiber network to more than 50 million total locations, modernizes our wireless network, and rewards our shareholders.”
Key takeaways from AT&T’s strategic plan:
- Massive Fiber Expansion: AT&T aims to reach over 50 million locations with fiber by the end of 2029, solidifying its position as the nation’s largest fiber broadband provider. This expansion includes a combination of organic deployment, joint ventures (like Gigapower with Blackrock), and agreements with commercial open-access providers.
- 5G Network Modernization: By 2027, AT&T plans to complete a major overhaul of its 5G wireless network, leveraging open technology and deep mid-band spectrum to cover over 300 million people by the end of 2026. This upgraded network promises lightning-fast speeds and will serve as a foundation for future innovations, including GenAI applications.
- Customer-Centric Approach: AT&T emphasizes its commitment to customer satisfaction, aiming to deliver personalized, secure, and high-value services on a network built for capacity and affordability.
- Exit from Legacy Copper: As part of its network modernization efforts, AT&T plans to phase out its legacy copper network operations across most of its wireline footprint by the end of 2029.
- Significant Shareholder Returns: AT&T projects over $40 billion in returns to shareholders over the next three years through dividends and share repurchases. The company plans to maintain its current annual dividend of $1.11 per share and has authorized an initial $10 billion tranche of share repurchases.
Financial Outlook:
AT&T has set ambitious financial targets for 2025 through 2027, including:
- Consolidated service revenue growth in the low-single-digit range annually.
- Adjusted EBITDA growth of 3% or better annually.
- Free cash flow, excluding DIRECTV, of $16 billion+ in 2025, growing to $18 billion+ in 2027.
- Adjusted EPS, excluding DIRECTV, of $1.97 to $2.07 in 2025, with double-digit percentage growth in 2027.
Capital Allocation:
The company expects to generate significant financial capacity over the next three years, with plans to allocate capital towards:
- Dividends and share repurchases ($40 billion+)
- Potential strategic investments (organic or inorganic)
- Debt repayment
- Redemptions of noncontrolling interests