In afternoon trading, American Tower’s stock was down over 4% as traders assessed the income shortfall that the towerco is facing following AT&T Mexico’s refusal to pay rent since early 2025.
AT&T Mexico—a legally separate subsidiary from AT&T Mobility (U.S.) with its own master lease—has been withholding tower rent since early 2025, American Tower told investors last Friday in a late afternoon SEC filing.
In 2024, AT&T Mexico contributed about $300 million of AMT tenant revenue, roughly 3% of AMT’s total property revenue. By contrast, AT&T Mobility (U.S.) accounts for approximately 14–15% of AMT’s property revenue; after backing out the Mexico piece, that implies $1.1–$1.2 billion in U.S. payments to AMT on a 2024 basis.
The two AT&T units operate under separate contracts with no indication of cross-guarantees, so the Mexico dispute doesn’t obligate the U.S. unit or affect its current rent stream.
American Tower said it has booked about $10 million of reserves tied to the Mexico non-payment and will likely add more if it persists, while asserting valid defenses and the full enforceability of its Master Lease Agreement with AT&T Mexico. The dispute is slated for arbitration in August 2026. On a run-rate basis, the withheld amount translates to roughly $25 million per month, though any ultimate loss would depend on duration and recovery through settlement or award.
AT&T Mexico was formed from AT&T’s acquisitions of Iusacell (2014) and Nextel Mexico (2015) and has invested over $ 10 billion in the market, serving approximately 23 million subscribers and holding a roughly 18% market share—competing against Telcel (América Móvil/Carlos Slim), which has about 64%.
Recent reports indicate that AT&T has explored the sale of its Mexico unit for over $ 2 billion, while cautioning that there’s no guarantee of a transaction.
