- Agreement covers repayment of the majority of withheld 2025 tower rents; monthly payments restart, with a balance parked in escrow.
- AT&T Mexico represented about US$300m of American Tower’s 2024 tenant revenue; arbitration remains scheduled for August 2026.
What happened: Escrow in place as monthly payments restart
Telecoms.com cites a filing-based update that American Tower has reached terms with AT&T Mexico to resolve a months-long row over unpaid tower rents. Under the agreement, AT&T Mexico will remit most withheld amounts and resume regular payments; the remainder goes into an irrevocable escrow, to be released by outcome of arbitration or mutual consent.
The dispute saw AT&T Mexico withhold rents from early 2025; American Tower had previously disclosed the customer contributed roughly US$300m of tenant revenue in 2024 and that formal arbitration was booked for August 2026. Those markers underscore why cash-collection visibility matters for the towerco’s Latin America portfolio.
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Why it’s important
For American Tower, restored cash flow reduces near-term uncertainty, but escrow means part of the exposure still hinges on arbitration. Any sustained change in AT&T Mexico’s footprint or strategy could ripple through lease amendments, term extensions, or churn—especially as Mexico’s market remains competitive.
Investors will watch collections, days sales outstanding and guidance sensitivity, along with knock-on effects for capex at co-located sites. For AT&T Mexico, normalising payments may stabilise relationships ahead of strategic decisions flagged in local reporting this summer. More broadly, the episode illustrates the leverage and limits of master lease agreements in emerging markets: they can secure long-term revenue, but enforcement and recovery can take time, and settlements often sit alongside lengthy arbitration calendars.
