AT&T Mexico—a legally separate subsidiary from AT&T Mobility (U.S.)—has stopped paying rent on its tower leases since early 2025, according to an SEC filing by American Tower.
In 2024, AT&T Mexico generated about $300 million in revenue for American Tower, roughly 3% of the company’s total property revenue. On a run-rate basis, the current non-payment translates to around $25 million withheld each month.
While AT&T Mobility (U.S.) remains unaffected—contributing $1.1–$1.2 billion annually under a separate contract—the Mexico issue is significant enough to draw attention across the industry.
Why This Matters for Industry Stakeholders
For tower operators: The dispute underscores the importance of airtight contracts in markets where carrier financial pressures are rising. Even established players can pause payments when strategic priorities shift.
For carriers: The case highlights how infrastructure commitments can become financial flashpoints, especially when subscriber growth slows or competition intensifies.
For vendors and partners: Payment delays at this scale can ripple downstream, influencing how network builds, upgrades, and service contracts are financed.
Financial & Legal Developments
American Tower has already reserved $10 million for the missed payments and may need to set aside more if non-payment continues. Arbitration is set for August 2026, but the timeline means uncertainty for years.
How much American Tower ultimately recovers will depend on the duration of the standoff and the outcome of arbitration or a potential settlement.
The Bigger Picture in Mexico
AT&T Mexico was formed through the acquisitions of Iusacell (2014) and Nextel Mexico (2015), with the parent company investing over $10 billion into the market. The carrier now serves about 23 million subscribers and holds 18% of market share, competing against Telcel, which dominates with 64%.
Amid financial pressures, AT&T has reportedly explored selling its Mexico business for over $2 billion—though no deal is guaranteed. The current rent dispute may add urgency to those talks.
✅ Takeaway for Industry Professionals:
The AT&T Mexico–American Tower standoff isn’t just about one lease agreement—it’s a warning signal for the entire telecom and tower ecosystem. With $25 million a month on the line, the outcome could shape how future infrastructure contracts are negotiated, enforced, and valued in competitive markets like Mexico.
