AT&T just fired a $3 billion shot at T-Mobile's growing internet business
AT&T is going all-in on fiber.
AT&T logo. | Image by PhoneArena
Data usage is expanding every day, and carriers are taking different steps to meet the growing demand. AT&T, in particular, has signed an important deal worth more than $3 billion that will help it shape an important part of its business.
AT&T recently published a press release announcing that it has signed a multi-year deal with a materials science company, Corning. The deal is reportedly worth more than $3 billion, and its motive is to receive fiber and cable from Corning, which AT&T needs to manage the growing demand for internet in America.
The supply that AT&T will receive from Corning will help the carrier easily handle the growing demand for fast and reliable internet connections. The company claims that internet consumption by the average American has increased significantly in recent times. According to the company, an average household in America that uses AT&T Fiber consumes more than 1 terabyte of data per month. The consumption figure is reportedly five times higher than what was reported 10 years ago, in 2016.
AT&T's partnership with Corning
The partnership comes at a time when consumers are reportedly shifting toward the use of fiber and fixed wireless internet options. For reference, a recently conducted survey by CableTV found that there was a 12% increase in the number of users who are using fiber internet. Interestingly, the same survey concluded that there was a serious decline (24%) in the number of consumers who are using cable internet.
AT&T is apparently aware of this growing demand. Talking about this, CEO John Stankey mentioned in the press note, "Fiber remains the gold standard for superior internet connectivity, and AT&T is the nation's leader in fiber."
Can AT&T recent fiber push keep T-Mobile's home internet ambitions in check?
0 Votes
Internet consumption is growing at a rapid pace
Interestingly, the prediction is that demand will not slow down anytime soon, and we could see the figure rise to 2 or 2.5 terabytes per month by 2030. One of the primary reasons behind this is definitely the daily use of AI services like ChatGPT and Gemini. In addition, online streaming, gaming, and video calls are also considered high-internet-consumption tasks.
Such massive internet demand, which doesn't appear to be slowing down, can only be fulfilled by fiber, according to AT&T. The reason behind this is that a fiber connection delivers quick and reliable service, which is reportedly three times faster than what you get from satellite services.
A massive bet for the future
By striking a partnership with Corning, the carrier is reportedly looking to reach at least 60 million fiber locations by the end of 2030. It is also worth noting that AT&T has committed around $250 billion over five years to improve its infrastructure in America.
It's not only AT&T that understands the growing demand for the internet. Its competitors are also taking the necessary steps to bring fast and reliable internet to their respective customers. For instance, Verizon finalized the acquisition of Frontier in a $20 billion deal after first announcing its intention to do so back in September 2024. The deal was completed in January this year.
Competitors are not much behind
T-Mobile, which is one of the biggest U.S. carriers, has apparently taken a different path. In April this year, it also announced that it was making big changes to its fiber internet offerings because of the growing competition and demand. For context, the Fiber 500 Mbps plan, which was previously available for $55 per month, has been updated and is now available for just $45 per month.
All that said, AT&T should also not underestimate SpaceX's Starlink. Slowly but steadily, it's becoming a reputable name in the broadband genre. The company recently confirmed that it is serving more than 12 million customers with high-speed internet across 160+ countries.
Here are more AT&T stories worth reading:
Popular stories
Latest News
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: