AT&T: Devastating 5G Auctions [telecom]

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Summary

• AT&T faces an expensive bill of the ongoing C-band auctions.

• The major wireless stocks struggled after a record wireless spectrum auction in 2015.

• The recent decision to not hike the dividend could reflect the trouble with the upcoming 5G spectrum costs.

• The stock is likely to hang below as the wireless and media giant either overspends on the auction or a competitor becomes a lot more formidable.