AT&T raises spending plan for U-verse

AT&T said on Monday it had raised its spending plan for its new Internet and video service, called U-verse, by up to $1.4 billion, although it scaled back its end-2008 target for the rollout.

The top U.S. phone company said it plans to spend $6 billion to $6.5 billion on U-verse, which promises a high-definition video and ultra-high speed Internet service, compared to its initial plan to spend $5.1 billion.

AT&T said the increase in spending on U-verse will not affect its outlook for overall capital expenditure in 2007 and 2008.

Despite the higher spending, AT&T said it expects the service to be "passed," or made available, to 18 million homes in its traditional 13-state territory by the end of 2008, down from an initial estimate of 19 million homes.