AT&T (NYSE:T) likely won't be ready to ramp up its capex now that it has walked away from the T-Mobile merger, said analyst Mike Genovese of MKM Partners.
In a research note, the analyst indicated that "the books are already largely closed on 2012 capex, and it is unlikely that there will be much spending during the annual planning finalization meetings in January.
That means Genovese doesn't expect to see unusually large spending coming from AT&T early in 2012. Morgan Keegan & Co. analyst Simon Leopold predicted that AT&T may "remain frugal" because it is taking a $4 billion charge to pay a break-up fee to Deutsche Telekom for the failed merger.
Other analysts believe AT&T will move aggressively with spending. George Notter, analyst with Jefferies & CO., said in a research note that AT&T had "aggressively dialed back Q4 spending" and gave some vendors the notion that first-quarter 2012 spending would be more aggressive.
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