AT&T Strengthens Fiber Leadership with Plans to Bring High-Speed Internet to More People Through New and Expanded Third-Party Relationships

DALLAS, Sept. 9, 2024 /PRNewswire/ -- Continued expansion at Gigapower and new agreements with commercial open-access providers will deliver world-class broadband access to new service areas

Key Takeaways:

America's largest fiber provider¹ is bringing high-speed fiber internet to more people and new geographies through continued expansion of Gigapower's fiber footprint and four new agreements with commercial open-access providers.
AT&T's proven fiber leadership makes it the clear provider of choice for commercial open-access fiber builders.

AT&T, the largest fiber provider in the U.S.¹, is expanding where it can serve world-class fiber reaching more people and places across the country than anyone else.

To bring fiber to more Americans, AT&T is pursuing a variety of economically-attractive models that complement its primary focus of growing its organic in-footprint fiber network. These other models include: its Gigapower joint venture with BlackRock, through a fund managed by its Diversified Infrastructure business, commercial open-access agreements, and public-private partnerships supported by federal infrastructure funding through programs like BEAD.

The Company already serves more than 8.8 million AT&T Fiber customers and passes 28 million+ total consumer and business fiber locations. Customers continue to show they love AT&T Fiber. AT&T was voted the best fiber provider in the country according to the 2024 American Customer Satisfaction Index² and AT&T Fiber is America's fastest Internet with the most reliable speeds according to Ookla³.

AT&T's continued fiber expansion grows its ability to serve customers how they want to be served with 5G and fiber connectivity from one provider. Today, about four of every 10 AT&T Fiber households choose AT&T wireless service. AT&T's Mobility business also performs better where it offers fiber. AT&T's postpaid phone subscriber share is about 500 basis points higher where the Company offers AT&T Fiber versus its average subscriber share nationwide.

AT&T remains focused on growing where it offers fiber in both existing and new service areas. While still in the early phase of scaling, AT&T Fiber performance in Gigapower geographies is showing positive momentum. Key business trends include:

AT&T Fiber penetration rates ahead of the initial business plan.
Greater adoption of 1 gigabit-plus fiber speed tiers as compared to the Company's in-footprint AT&T Fiber customers.
Increased customer convergence, with AT&T Fiber customers in Gigapower geographies attaching AT&T wireless services at rates equal to, or greater than, those realized on average across the AT&T Fiber customer base.
Scaling build cadence with plans to exit 2024 on an accelerated trajectory.

Based on this performance, AT&T and BlackRock plan to grow Gigapower and are looking for opportunities to expand Gigapower's fiber footprint beyond the initial 1.5 million locations announced in December 2022. This Gigapower expansion may include growth in its existing geographies as well as the addition of new geographies.

"AT&T is America's largest and leading fiber provider," said John Stankey, chief executive officer, AT&T. "With our organic fiber build, we're seeing improving returns as we expand our network. In new service areas, Gigapower is ramping well, and we're targeting additional geographies for growth with the joint venture and other commercial open-access agreements. Customers tell us they want a high-performance wireless and broadband experience from a single provider, and AT&T is best positioned to serve this growing need."

"BlackRock is proud to partner with AT&T to bring high-speed internet to more American households," said Larry Fink, chairman and chief executive officer, BlackRock. "This continuing investment on behalf of our clients in Gigapower is helping bridge the digital divide and supporting economic growth in communities across America through expanded access to critical broadband services."

AT&T is the proven leader in fiber and the clear provider of choice for commercial open-access fiber builders. AT&T provides fiber builders with a winning fiber formula. It is able to offer commercial open-access providers a unique combination of network architecture expertise, a cost-effective growth path, and an agile go-to-market approach to efficiently penetrate fiber builds with a wireless cross-sell base and more distribution points than any competitor.

In order to reach even more people with AT&T Fiber in geographies not served by AT&T's network or Gigapower, AT&T is announcing four new agreements with commercial open-access providers: Boldyn Networks, Digital Infrastructure Group, PRIME FiBER and Ubiquity. These fiber agreements provide AT&T with wholesale access to these fiber broadband networks, enabling the Company to offer both AT&T Fiber and 5G wireless services to more customers.

Each company AT&T is working with was selected because they provide opportunities to expand AT&T Fiber distribution to new service areas without existing fiber options. As these providers add fiber locations, AT&T will evaluate where it wants to offer AT&T Fiber.

Boldyn Networks is a trusted provider across a wide range of industries, including transit, venues, government, mixed use developments, and enterprises. Their portfolio also includes a significant focus on the U.S. Armed Forces, providing network infrastructure at more than 75 bases nationwide across all military branches. This agreement builds on our existing collaboration with Boldyn to modernize communications at military bases, including delivering fiber, FirstNet, and 5G communications. Boldyn Networks is initially building at Fort Bliss in El Paso, Texas, and joint bases in San Antonio, Texas.
Digital Infrastructure Group is a U.S. and Canada-based wholesale fiber developer and operator with extensive broadband experience in international markets, currently expanding into new regions across the United States.
PRIME FiBER, backed by InLight Capital, is a newly established commercial open-access fiber infrastructure provider serving internet service providers, infrastructure consolidators and enterprises across the U.S. Our agreement with PRIME FiBER builds on our successful, long-time relationship with Prime Communications, which is our largest authorized retailer and presents additional fiber distribution benefits. PRIME FiBER is initially building in Florida.
Ubiquity has built one of the nation's largest commercial open-access fiber networks, scaling significantly in the last two years. Ubiquity will be providing access to AT&T across its multi-state footprint and bringing fiber to private access locations including multifamily communities and private homeowners' associations (HOAs) on a targeted basis nationally. It will also build exclusive greenfield areas for AT&T, initially in Minnesota.

AT&T continues to organically build fiber at scale in-footprint and remains on track to pass 30 million+ consumer and business locations with fiber by the end of 2025. The better-than-expected returns the Company is seeing on its fiber investment potentially expands the opportunity to go beyond this target by roughly 10 million to 15 million additional in-footprint locations passed. This also assumes similar build parameters and a regulatory environment that remains attractive to building infrastructure.

To learn more about AT&T's leadership in fiber and converged connectivity, please tune in for a fireside chat with AT&T's chief executive officer, John Stankey, at the Goldman Sachs Communacopia + Technology Conference starting at 11:10 a.m. ET on September 10. The webcast of Stankey's conversation will be available live, and for replay, at AT&T Investor Relations.

¹ Based on the number of fiber to the home households using publicly available data.
² Compared to measured Internet Service Providers in the 2024 ACSI® Telecommunications Study of customers rating their own ISP. ACSI and its logo are registered trademarks of the American Customer Satisfaction Index LLC.
³ Based on analysis by Ookla® of Speedtest Intelligence® data nationwide Speed Score, Consistency Score and average Consumer Ratings for Q1–Q2 2024. Ookla trademarks used under license and reprinted with permission.

About AT&T

We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

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