AT&T is accelerating its fiber deployment across the U.S., targeting 20 million homes passed by 2027 to enhance service quality and market competitiveness. The move underscores a strategic pivot toward high-speed broadband infrastructure as a core growth driver.
- AT&T aims to pass 20 million homes with fiber by 2027, up from a prior target of 15 million.
- The company plans to invest $15 billion in fiber infrastructure over five years.
- Fiber network currently serves over 10 million homes; expansion focuses on urban and rural markets.
- Broadband segment contributes 18% of AT&T’s total service revenue and is expected to grow 3.5% YoY.
- Federal funding under the Infrastructure Investment and Jobs Act supports expansion efforts.
- AT&T stock (T) rose 4.2% in early trading post-announcement, outperforming sector benchmarks.
AT&T has announced an expanded plan to extend its fiber-optic network, aiming to pass 20 million additional homes by 2027—an increase from its prior target of 15 million. This expansion is part of a broader strategy to solidify its position in the residential broadband market, where fiber connectivity is increasingly seen as a differentiator. The company is investing approximately $15 billion in fiber infrastructure over the next five years, with initial deployment focused on high-growth metropolitan areas and underserved rural communities. The push follows rising competition from providers like Comcast (CMCSA) and Verizon (VZ), both of which have significantly expanded their own fiber footprints. AT&T’s current fiber network already reaches over 10 million homes, but the company believes that increasing coverage to 20 million will improve customer acquisition, reduce churn, and support higher average revenue per user (ARPU) in broadband services. Enhanced fiber capacity is also critical for supporting emerging services such as 5G fixed wireless and smart home ecosystems. Analysts note that fiber deployment is a key indicator of long-term telecom value, with companies investing in fiber seeing improved subscriber retention and stronger margins. AT&T’s fiber expansion is expected to contribute to a projected 3.5% year-over-year growth in its broadband segment, which now accounts for about 18% of total service revenue. The initiative also aligns with federal broadband funding programs, including the Infrastructure Investment and Jobs Act, which has allocated $65 billion for expanding high-speed access across the U.S. The market has responded positively, with AT&T’s stock (T) showing a 4.2% increase in early trading following the announcement, outperforming both the S&P 500 and the broader telecom sector. Investors are viewing the fiber investment as a sign of management’s commitment to sustainable growth beyond legacy wireline services.