AT&T (T) Investor Day 2024 summary

Strategic Direction and Capital Allocation

• Plans to invest $22 billion annually from 2025–2027, focusing on expanding fiber and modernizing wireless networks, targeting over 50 million fiber locations passed by 2029.

• $40 billion will be returned to shareholders through dividends and share buybacks over three years, with $10 billion reserved for strategic flexibility.

• Capital allocation balances growth investments with robust shareholder returns, targeting 80% of free cash flow returned to shareholders.

• Net debt-to-adjusted EBITDA targeted in the 2.5x range, with continued focus on balance sheet strength.

• Board will review dividends annually, maintaining a $1.11/share payout, with share repurchases starting in the second half of 2025.

Network Transformation and Operational Efficiency

• Fiber expansion to 50+ million locations by 2029, with 45 million owned and operated and 5+ million via partnerships.

• Wireless modernization will cover 300 million POPs with midband 5G by 2026, transitioning 70% of 5G traffic to open hardware.

• Copper network exit targeted by 2029, with significant cost savings from decommissioning legacy infrastructure.

• $3 billion in additional run-rate cost savings targeted between 2025–2027, mainly from legacy network rationalization and real estate reductions.

• Cost to maintain fiber is 35% less than copper, and self-install rates are expected to rise, further improving efficiency.

Growth in Core Businesses and Customer Focus

• Consumer fiber revenues expected to grow at a mid-teens CAGR through 2027, with a goal of 50% penetration in all fiber markets.

• Converged customers (fiber + wireless) have higher NPS, lower churn, and 15%+ higher lifetime value.

• Business solutions to leverage strong mobility and fiber assets, aiming to increase SMB fiber penetration above the current 30%.

• Wireless service revenues projected to grow 2–3% annually, with EBITDA growth of 3–4% per year.

• Mexico operations and business wireless expected to deliver continued EBITDA growth.