REDMOND, Washington, United States—AT&T Wireless Services said in its third-quarter earnings report that it has decided to exit the fixed wireless business during the next several months.
AT&T Wireless said when it became an independent company earlier this year, its fixed wireless business had the potential to deliver value to shareowners, providing it met key financial targets going forward. But in the third quarter, the fixed wireless unit did not meet its financial targets, and the company determined that the fixed wireless business would require significant additional capital to gain the scale necessary for long-term success.
“This is the right decision, given our strategic priorities and the additional capital our fixed wireless business would require going forward,” said John Zeglis, AT&T Wireless chairman and chief executive officer. “We are committed to a phased exit that will ensure a high level of support for affected customers.”
Zeglis said the company would help those affected employees find alternative employment, but he did not specify how many employees were affected.
AT&T Wireless is in the process of finalizing its plans and anticipates taking fourth-quarter pre-tax charges of approximately US$1.3 billion, associated with its exit from the fixed wireless business.
