Feeding the Need for Speed: AT&T's Grand $42.5B Plan to Expand Fiber-Optic Reach

Anusuya Lahiri
2 min read
4
In this article:

  • AT&T Inc (NYSE: T) is expanding its fiber-optic cable network to deliver fast internet speeds for customers, including those without broadband presence.

  • AT&T has tapped BlackRock, Inc (NYSE: BLK) and eyes government funding to accelerate the build-out to fund the extravagant expansion worth $42.5 billion as its debt load outstrips its annual revenue, the Wall Street Journal reports.

  • AT&T and BlackRock have collectively invested $1.5 billion in the Gigapower venture so far.

  • AT&T will serve as the anchor tenant of the Gigapower network, while other companies could also provide internet service.

  • Gigapower recently introduced plans to build fiber in Las Vegas, northeastern Pennsylvania, and parts of Arizona, Alabama, and Florida.

  • Contrastingly, rivals Verizon Communications Inc (NYSE: VZ) and T-Mobile US, Inc (NASDAQ: TMUS) rely on improved technology that beams broadband service from the same cellular towers that link their millions of smartphone customers.

  • AT&T is testing a similar service on a smaller scale while fiber remains the long-term focus.

  • It incurred $24 billion on its fiber and 5G networks in 2022 and eyes a similar level of spending in 2023.

  • The telco giant wants its fiber network to cover over 30 million homes and businesses within its current service area by the end of 2025.

  • In April, AT&T reported first-quarter FY23 operating revenues of $30.14 billion, up 1.4% year-over-year, marginally missing the consensus of $30.26 billion.

  • The Consumer Wireline segment had 272 thousand of AT&T Fiber net adds.

  • Price Action: T shares traded lower by 0.30% at $16.61 in the premarket on the last check Thursday.

  • Photo by Tdorante10 via Wikimedia

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This article Feeding the Need for Speed: AT&T's Grand $42.5B Plan to Expand Fiber-Optic Reach originally appeared on Benzinga.com

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