AT&T Projects Up to $8 Billion in Tax Savings from Legislation

AT&T anticipates unlocking between $6.5 billion and $8 billion in cash tax savings by 2027 as a result of legislative changes introduced during the administration of former President Donald Trump. During the company’s second-quarter earnings call, CEO John Stankey highlighted the financial benefits stemming from the tax reform known as the One Big Beautiful Bill, which he believes will significantly accelerate the company’s investments in next-generation network infrastructure.

Stankey expressed optimism about the impact of these policies on AT&T’s operational efficiency. He stated, “The alignment of those policy things that are going on right now… is even more significant than when the Telecom Act of ’96 was passed.” This legislative support enables AT&T to allocate approximately $3.5 billion of its anticipated tax savings towards expanding its fibre network.

Accelerated Fibre Network Expansion

The company plans to enhance its fibre buildout, aiming to reach a rate of over four million homes per year by the end of 2026. By 2030, AT&T targets a total of 60 million business and consumer fibre locations, which will include the integration of Lumen Technologies’ consumer fibre footprint once the acquisition is finalized early next year.

In addition to the tax legislation, Stankey noted the positive effects of the Federal Communication Commission (FCC) deregulation initiative. This includes easing restrictions on the decommissioning of legacy copper lines, allowing AT&T to retire inefficient infrastructure. Stankey announced that the company has filed with the FCC to discontinue service across approximately 10 percent of its wire centres in 17 states.

Market Performance Highlights

In its latest earnings report, AT&T added 401,000 net post-paid customers during the second quarter, slightly down from 419,000 in the same period last year. This performance surpassed analyst expectations, which predicted 302,600 additions. In contrast, rival Verizon reported a net loss of 9,000 post-paid subscribers.

The company’s fixed wireless access (FWA) service, branded as Internet Air, gained 203,000 new customers, bringing its total subscribers to one million. The Chief Financial Officer, Pascal Desroches, attributed this growth to enhanced wireless network monetization efforts that expanded mid-band spectrum coverage.

Overall, AT&T’s revenue rose by 3.4 percent year-over-year to $30.8 billion, exceeding market forecasts of $30.5 billion. Net income increased to $4.5 billion from $3.5 billion, indicating a robust financial performance despite challenges in the sector.

While praising the legislative measures that have benefited AT&T, Stankey acknowledged the uncertainty created by fluctuating tariffs and the impact of federal budget cuts on public sector spending. He also remarked on immigration policies affecting the prepaid sector, emphasizing the need for stability to foster growth in the telecommunications industry.

As AT&T moves forward, the company remains focused on leveraging tax savings and regulatory changes to enhance its network capabilities and customer service, positioning itself for sustainable growth in the competitive telecom landscape.