Summary
American Tower Corporation (AMT) disclosed a significant legal dispute with its customer AT&T Mexico. AT&T Mexico, which accounted for approximately $300 million in tenant revenue for AMT in 2024, has been withholding tower rent payments since early 2025. This situation led AMT to record $10 million in reserves during Q2 2025, with potential for further reserves if the dispute continues. The company asserts strong defenses and confidence in the Master Lease Agreement (MLA) with AT&T Mexico, with arbitration slated for August 2026. In addition, the company provided an update on its relationship with DISH Network. DISH represents a smaller portion of AMT's overall revenue (2% total, 4% U.S. & Canada), with a Master Lease Agreement in place until 2036. Investors should monitor the resolution of the AT&T Mexico dispute, as it could impact future revenue and profitability.
Key Highlights
- 1AMT is involved in a legal dispute with AT&T Mexico, a significant customer representing approximately $300 million in 2024 tenant revenue.
- 2AT&T Mexico has been withholding tower rent payments since the beginning of 2025.
- 3American Tower recorded $10 million in reserves in Q2 2025 due to the AT&T Mexico dispute, with potential for additional reserves.
- 4The company is confident in its legal position and the enforceability of its Master Lease Agreement with AT&T Mexico.
- 5Arbitration for the AT&T Mexico dispute is scheduled for August 2026.
- 6DISH Network represents approximately 2% of AMT's total annual property revenue and 4% of U.S. & Canada revenue.
- 7AMT has a Master Lease Agreement with DISH Network, signed in 2021 and expiring in 2036.