AT&T Enhances Spectrum Position Following Winning FCC Auction Investing $980 Million

   By Stephen Nakrosis 
 

AT&T Inc. (T) said Monday it was the winning bidder at a Federal Communications Commission auction for spectrum licenses that cover over 98% of the U.S. population.

It plans to use the spectrum to enhance its mobile 5G services, the company said. AT&T was the first U.S. wireless carrier to introduce mobile 5G service, which is available in parts of 19 cities. The company plans to have its 5G service reach parts of 29 cities by the end of 2019, it said.

AT&T spent $980 million in the auction, and the purchase doesn't change 2019 guidance for free cash flow, net asset monetization or debt-leverage ratio. It continues to expect $6 billion to $8 billion in proceeds from asset monetization, net of spectrum purchases and other asset acquisitions.

"After reaching the 2.5x range for net-debt-to-adjusted-EBITDA, the company will also look at using a portion of its free cash flow after dividends to evaluate share buybacks and retire shares it issued in conjunction with the Time Warner acquisition," AT&T said.

--Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

June 17, 2019 18:55 ET (22:55 GMT)

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