T · Earnings call · 2026Q3T · Full report
Fiber Expansion
AT&T INC. · 2026-10-21 · Importance 26 · Surprise 24
AT&T said its fiber reach is at a record level and is using introductory pricing to build penetration and establish a home relationship, with opportunities to add wireless and other services over time. Management said it believes 40% penetration supports its investment economics, while 40%–50% is achievable through persistence, varied tactics and increased convergence; it also said wholesale access could be considered in mature markets to increase use of network capacity. The Lumen-acquired markets started comparatively under-penetrated, but penetration is increasing as AT&T converts them to AT&T Fiber and applies its operating processes. AT&T also announced a joint venture involving Gigapower and Lumen-acquired fiber assets to accelerate deployment outside traditional operating territories, alongside a goal of reaching more than 60 million fiber locations by decade-end.
Key facts
- AT&T announced an agreement with Global Infrastructure Partners and CPP Investments to form a joint venture including Gigapower and fiber assets acquired from Lumen to accelerate fiber deployment outside its traditional operating territories.
- AT&T believes it can reach 60 million+ fiber locations by the end of the decade with annual capital investment roughly $1 billion lower than previously planned.
- AT&T said it would consider acquiring additional fiber footprint if the price is appropriate, the infrastructure meets its standards, and the assets add scale in the right geography.
- AT&T's internal fiber investment economics assume a terminal penetration rate of 40%, and the company believes it can exceed that level.
- AT&T said achieving 40%-50% fiber penetration takes more time and different tactics, and will rely substantially on success in gaining converged customers.
- AT&T said its acquired Lumen markets were under-penetrated relative to AT&T markets of comparable build tenure and it is converting them to AT&T Fiber.