View the investment forecasts
| Forecast issued | Annual range |
|---|---|
| July 22, 2026 | $23–24 billion |
| October 21, 2026 | $22–23 billion |
Both endpoints fall by $1 billion per year. The October continuing-operations outlook excludes AT&T Mexico from 2027. These are company-wide capital investment forecasts, including vendor-financing payments, not fiber-only costs. Bars start at zero; darker ends mark forecast ranges.
AT&T says it can reach more homes with fiber internet while spending less than it previously planned. On October 21, the telecom company (NYSE: T) lowered its annual capital investment forecast for 2027 and 2028 by about $1 billion, keeping its goal of reaching over 60 million fiber locations by 2030. [1] [2]
The savings already have another job. AT&T expects to put the money toward winning customers and paying higher interest. Its forecast for cash left after investment did not rise. [3]
One home, two subscriptions
AT&T added 442,000 fiber connections in the third quarter, counting consumer and business customers. Nearly 43% of households using its advanced home internet services also had AT&T wireless. That gives the company a second service to sell after connecting a home. [1]
Management described introductory pricing intended to bring internet customers aboard, then add wireless and other services. Fiber carries data through glass cables; pairing it with mobile service lets AT&T compete for more of a household's communications spending. [3] [4]
Where the smaller budget comes from
The revised plan calls for $22 billion to $23 billion in annual capital investment in 2027 and 2028. July's range was $23 billion to $24 billion. The measure includes spending on networks and support systems, plus payments on equipment bought through vendor financing. [1] [2]
Part of the reduction reflects a smaller business. AT&T agreed on October 13 to sell its Mexico wireless operation for $2 billion in cash, subject to adjustments, plus other benefits. Closing is expected in early 2027, with regulatory approval still required. [5]
Chief financial officer Pascal Desroches said removing Mexico accounts for $300 million to $400 million of the roughly $1 billion annual cut. He attributed the balance to more efficient construction, including scale and established supplier contracts. [3]
AT&T is also sharing the expansion effort. An October 6 agreement would combine two fiber businesses in a venture owned 50% by AT&T and 50% collectively by infrastructure investors Global Infrastructure Partners and CPP Investments. The planned venture would help build beyond AT&T's traditional territories. Closing is expected in the first half of 2027, subject to approvals and other conditions. [4]
New customers need cash first
Desroches explained the timing problem: AT&T pays for phones, tablets and internet equipment before collecting the money over time. Higher equipment costs and customer growth can therefore tie up more cash. [3]
“We pay upfront and we collect over time”
Borrowing also costs more. Quarterly interest expense reached about $2 billion, up from $1.7 billion a year earlier. AT&T's filing attributes the increase mainly to higher debt and interest rates, and expects interest expense to remain elevated after its spectrum purchase. [6]
The company kept its free-cash-flow forecasts at more than $19 billion for 2027 and $21 billion for 2028. [1] Cheaper construction helps, but the expansion still has to win customers profitably in a competitive market. The smaller investment budget gives AT&T room to pursue that growth; it does not make the customer equipment or debt bill disappear. [6]