AT&T Announces $1 Billion Agreement with Corning

AT&T Inc. (NYSE: T) has announced a significant $1-billion multi-year purchase agreement with Corning Incorporated (NYSE: GLW), aimed at enhancing its fiber optic network and expanding high-speed internet access across the United States. The deal, revealed on Monday, will provide AT&T with fiber, cable, and connectivity solutions from Corning, allowing the telecom giant to bolster its fiber footprint in both residential and commercial sectors.

John Stankey, CEO of AT&T, emphasized the importance of the collaboration in achieving the company’s broader goals. “We’ve built the nation’s fastest broadband network and this new multi-year agreement with Corning helps us to connect more households, communities, and businesses with the high-speed, reliable internet they need to thrive in a digital world,” he said in a statement.

For AT&T, the deal with Corning plays a critical role in its strategy to capitalize on the growing market for high-speed internet services. The U.S. wireless market has been experiencing a slowdown, leading companies like AT&T and Verizon Communications Inc. (NYSE: VZ) to shift their focus towards expanding their fiber-optic infrastructure. This shift is increasingly important as broadband competitors such as Comcast Corporation (NASDAQ: CMCSA) also vie for dominance in this market.

AT&T’s fiber network currently serves 28.3 million homes and businesses, and the company aims to increase that number to over 30 million by the end of 2025. However, the company faced a minor setback in the third quarter of this year, adding only 226,000 fiber customers instead of the expected 257,860. The shortfall was partly due to a work stoppage in its southeastern U.S. region that affected fiber installations.

AT&T’s aggressive fiber expansion comes at a time when telecom companies are looking to diversify their revenue streams amidst stagnant growth in traditional wireless markets. Fiber internet offers a more reliable and faster alternative to cable-based broadband, which is becoming increasingly important as more consumers work from home and stream content.

The agreement with Corning will help AT&T reduce costs while maintaining its aggressive expansion strategy. AT&T’s fiber network is a key component of its fixed broadband offerings, which have become a core driver of its financial performance. According to Visible Alpha, the telecom giant added fewer fiber customers than expected in the third quarter of 2023.

The deal builds on a decades-long relationship between AT&T and Corning, making Corning AT&T’s largest supplier of fiber optics and connectivity solutions. With preferential volume status, AT&T can secure large quantities of fiber at competitive prices, enabling it to expand its network rapidly.


Information for this story was found via The Globe And Mail and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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