AT&T gets $20B bailout to help it cover its losses on wireless, AT&M and wireless-related investments
AT&I on Monday announced a $20 billion bailout of its wireless and wired-equipment businesses.
The company also plans to use the money to help cover costs related to its investment in its Nextel satellite business.
The move came after AT&L reported fourth-quarter earnings on Monday that fell short of analysts expectations.
Analysts had projected a net income of $1.07 billion.
The company also reported a $3.6 billion loss on revenue of $21.7 billion for the three months ended Dec. 31, the company said.
The results included $2.6 million in restructuring costs and $2 billion in other non-cash items.
The AT&U chief executive officer, Randall Stephenson, said AT&G will use the $20-billion in capital it received from the bailout to support investments in wireless and wireless infrastructure.
The money will also be used to expand AT&t’s network, Stephenson said.
He said that AT&ts commitment will be for a long term, with the company not only working to upgrade its network but also developing technology that will enable more of its customers to access more content.AT&T and Nextel both had significant costs in the quarter, but Stephenson said the company also will be able to expand its wireless offerings.