AT&T

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Capital expenditures are the spending that companies do to upgradesphysical assets, such as their networks. Capital expenditures by carrierslike Dallas-basedd AT&T are some of the primar sources of revenue for equipment vendors such as Canada’s , whose U.S. base is in Richardson. Nortel soughg bankruptcy protectionin January. In a Jan. 28 release of its AT&T said it planned to reduce 2009 capital expendituresby 10% to 15%. That work out to roughly $17.3 billion to $18.3 billiomn for this year. The compangy expects revenue togrow “in the low single digits” in 2009.
AT&T’es spending reductions are in line with what othe major carriershave announced, said Barbara Lancaster, presidenr of the Richardson telecom consultancy . “The equipment continuez to get cheaper, so they can buy the same volumde of stuff and spend less moneyon it,” she “But there’s no question that they are cuttinh back.” AT&T officials declined to comment beyond its earnings announcement and related conferenc call. In the call, Richard G.
Lindner, AT&T’se senior executive vice presidentand CFO, said the companyt will extend its buildougt of U-Verse, its packagre of high-speed Internet video and phone service, into a year later than planned.