Wireless Industry News

AT&T’s second quarter slowdown in spending hit some contractors hard, but the carrier itself has also felt the pain. Sources tell RCR Wireless News that AT&T has had to cut jobs, delay site builds and pay vendors for incomplete work. They say that one contributor to the slowdown has been major cost overruns related to AT&T’s “cell site of the future.”

The company declined to comment on the cell site of the future, but industry sources say it was envisioned as a way to integrate the carrier’s 700 MHz, 850 MHz, 1.9 GHz and 2.3 GHz spectrum bands.

“Great idea, but the cost overruns were more than three-times the budgeted amount,” said recruiter Paul Harris of GRN Blackhawk. “And they basically had to kind of true up and pay the vendors, and that work kind of came to about $3 billion.” AT&T’s total first quarter capital expenditures were $5.8 billion. The carrier is scheduled to announce second quarter results on July 23. Read the full article