According to the latest report from analysts at New Street Research, AT&T still has the financial strength to continue acquiring the 3.45GHz mid band spectrum after completing the $5.75 billion acquisition of Lumen’s consumer fiber business. Analysts point out that according to the most conservative estimate, AT&T still has at least $3 billion left for spectrum procurement.

In a research report submitted to investors, the New Street analyst team stated that according to calculations, AT&T currently has “full funds to purchase all of its planned spectrum resources”. The company revealed on Analyst Day last year that it had reserved approximately $10 billion for mergers and acquisitions and spectrum procurement, but analysts believe its actual funding capacity could reach $14 billion.

AT&T is currently acquiring approximately $1.2 billion worth of 3.45GHz spectrum through two transactions, UScellular and SoniqWave. If estimated by the company itself, after completing the transaction with Lumen and other three parties, there will still be approximately $3 billion in spectrum procurement budget remaining; According to New Street’s optimistic estimate, this balance could reach $7 billion.

Analysts specifically pointed out that the total value of T-Mobile’s previously transferred 3.45GHz spectrum license to Columbia Capital, as well as the AWS-3 license that AT&T may acquire, is expected to reach $6.4 billion. If AT&T introduces equity partners as planned to jointly operate Lumen fiber assets, it will receive sufficient cash to complete this critical transaction.

AT&T admitted in a recent filing with the FCC that its 5G mid band network construction lags behind Verizon and T-Mobile. The company is adopting a “dual band strategy” and simultaneously deploying the C-band and 3.45GHz spectrum. The document emphasizes that the 3.45GHz frequency band is the most realistic opportunity for AT&T to catch up at this stage, and considering that there are no new spectrum auction plans in the near future, the secondary market becomes the only feasible channel for reinforcement. ”

Compared to traditional spectrum below 2.5GHz, intermediate frequency bands such as 3.45GHz are not affected by legacy technologies and can provide a wider coverage range than millimeter waves. AT&T explained that this spectrum can meet the 5G wide area network needs of both urban and suburban areas, support high-speed data transmission, and is the core frequency band for 5G deployment. “