AT&T plans to invest $17 billion to $18 billion in 2009, in line with its 2007 capital expenditures of $17.7 billion and expected to exceed the planned investment of any other U.S. telecom company.
Approximately two-thirds of AT&T’s 2009 investment will extend and enhance the company’s wireless and wired broadband networks to provide more coverage, speed and capacity. To support increased customer demand in mobility, broadband and video, the company plans to add nearly 3,000 jobs in 2009. However, as previously announced, the company expects to reduce jobs in other areas — primarily wireline — due to economic pressures, a more streamlined organizational structure and continued shift among residential customers from wired voice services to wireless and broadband.
“Demand for broadband continues to grow as new applications emerge and customers embrace them, leading to data traffic on our network growing more than 50 percent year over year on average,” said Randall Stephenson, AT&T chairman and chief executive officer. “We expect demand will only escalate when the larger economy rebounds, and AT&T’s continued strong network investment will help ensure that we’re fully ready to support the next wave of economic growth. We recognize the continuing importance of investing in critical network infrastructure, which plays a key role in driving commerce, innovation and job growth.”
As providers and developers increasingly focus on tapping the potential of the mobile Internet, AT&T’s broadband investment priorities include multiple projects designed to enhance its 3G network. With 3G services now available in nearly 350 U.S. metropolitan areas, the company will focus in 2009 on enhancing coverage and reliability across this footprint, including the planned addition of more than 2,100 new cell sites across the country. Additionally, AT&T will expand 3G service to 20 new markets this year.