Key Takeaways:
- AT&T, as America’s largest fiber provider, is expanding high-speed fiber internet access to more people and new areas through an expanded Gigapower footprint and four new agreements with commercial open-access providers.
- AT&T’s leadership in fiber positions it as the preferred partner for commercial open-access fiber builders.
- With its extensive fiber network, AT&T is set to offer unrivaled converged wireless and broadband services across the country.
To extend fiber access to more Americans, AT&T is leveraging a mix of economically attractive models, including its Gigapower joint venture with BlackRock, commercial open-access agreements, and public-private partnerships supported by federal infrastructure funding such as BEAD.
Currently, AT&T serves over 8.8 million Fiber customers and covers more than 28 million consumer and business locations with fiber. The company leads in customer satisfaction according to the 2024 American Customer Satisfaction Index and is recognized by Ookla as providing America’s fastest and most reliable internet speeds.
AT&T’s fiber expansion enhances its ability to deliver integrated 5G and fiber services. About 40% of AT&T Fiber households also choose AT&T wireless service. Additionally, AT&T’s Mobility business performs better in areas where fiber is available, with a higher postpaid phone subscriber share in those regions.
The company is committed to growing its fiber network both in existing and new areas. Early results from Gigapower expansions show positive trends:
- Fiber penetration rates surpass initial expectations.
- There is a higher adoption of 1 gigabit-plus fiber speed tiers.
- Increased customer convergence, with Gigapower regions showing equal or higher rates of wireless service attachment compared to the broader AT&T Fiber base.
- An accelerated build cadence, with plans to finish 2024 on an accelerated trajectory.
AT&T and BlackRock are planning further growth for Gigapower, aiming to expand beyond the initial 1.5 million locations announced in December 2022, which could include both existing and new geographies.
John Stankey, CEO of AT&T, stated, “AT&T is America’s largest and leading fiber provider. Our organic fiber builds are yielding improving returns, and Gigapower is scaling effectively in new areas. We are targeting additional growth with the joint venture and commercial open-access agreements to meet customer demand for high-performance wireless and broadband services from a single provider.”
Larry Fink, CEO of BlackRock, added, “We are proud to partner with AT&T to expand high-speed internet access across America. Our investment in Gigapower is helping bridge the digital divide and support economic growth through enhanced broadband services.”
AT&T is a leader in fiber and the preferred choice for commercial open-access fiber builders. The company provides a compelling combination of network architecture expertise, a cost-effective growth path, and an agile go-to-market strategy, which enables efficient fiber builds with extensive distribution points.
To reach more customers in areas not served by AT&T’s network or Gigapower, AT&T has announced four new agreements with commercial open-access providers: Boldyn Networks, Digital Infrastructure Group, PRIME FiBER, and Ubiquity. These partnerships will offer wholesale access to their fiber networks, allowing AT&T to provide both fiber and 5G wireless services more broadly.
- Boldyn Networks: Focuses on a range of industries and military bases, currently building at Fort Bliss and joint bases in San Antonio, Texas.
- Digital Infrastructure Group: Expanding into new regions across the U.S., with extensive experience in international markets.
- PRIME FiBER: A new provider backed by InLight Capital, initially building in Florida and leveraging a long-standing relationship with Prime Communications.
- Ubiquity: Known for its large commercial open-access fiber network, will provide access across a multi-state footprint, including new builds in Minnesota.
AT&T continues to expand its fiber network organically and aims to pass over 30 million locations by the end of 2025. The company’s better-than-expected fiber investment returns could extend this target by an additional 10 to 15 million locations, assuming favorable build parameters and regulatory conditions.
For more on AT&T’s fiber leadership and connectivity solutions, join AT&T CEO John Stankey at the Goldman Sachs Communacopia + Technology Conference on September 10 at 11:10 a.m. ET. The webcast will be available live and for replay at AT&T Investor Relations.
