American Tower Corporation has reached an agreement with AT&T Mexico to resolve a portion of outstanding tower lease payments that were withheld since early 2025 under an ongoing arbitration process

The US company confirmed that AT&T Mexico will remit most of the previously withheld rents and resume regular monthly payments on most of its tower lease obligations.

The payments had been withheld since early 2025 due to a contractual dispute over disagreements on the interpretation and application of the Master Lease Agreement (MLA) between the two companies.

AT&T Mexico had withheld the payments, alleging contractual breaches, while the US company defended the validity of the agreement and the obligation to pay. This circumstance is still under arbitration.

Now, the situation has changed, and AT&T Mexico has submitted approximately $300 million of American Tower's lease revenue in 2024, making it one of the company's largest customers in the Latin American market.

As part of the new agreement, both parties have further agreed to deposit any remaining outstanding rent, as well as future disputed payments, into an irrevocable escrow account administered by an independent trust. These funds will be released upon final resolution of the arbitration by mutual consent.

In the second quarter of 2025, American Tower reported mixed results, but raised its full-year guidance for property revenue, EBITDA, and AFFO per share. The company also increased its net organic growth forecast for its Latin America and Africa/Asia Pacific segments.

American Tower completed a $575m unsecured public offering of bonds maturing in 2030 and 2035. A fundraising aimed at refinancing existing debt and financing strategic investments in its global operations.

While the new agreement reached with AT&T Mexico improves revenue visibility and helps stabilize cash flow in the short term, the ultimate outcome of the arbitration remains a significant risk.