We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
One Big Beautiful Bill Act Fuels AT&T's Fiber Densification
Read MoreHide Full Article
Key Takeaways
T is accelerating fiber deployment, adding 1M locations annually starting in 2026.
The One Big Beautiful Bill Act unlocks key spectrum bands to expand 5G coverage in rural areas.
T's integrated fiber and 5G+ rollout targets airports, stadiums, retail and FirstNet users.
AT&T Inc. (T - Free Report) is focusing more on fiber densification, courtesy of the One Big Beautiful Bill Act that Congress recently passed. The bill is likely to spur investment and boost economic development by unlocking significant mid- and low-band spectrum, which is critical to expanding 5G capacity and coverage, particularly in rural and suburban areas. The spectrum governance and AI scaling strategies incorporated into the law are likely to help the FCC set the ball rolling for new auctions for key bands: 600MHz, 3.1–3.45GHz and parts of the 6GHz band.
This is expected to cater to the burgeoning broadband demand, bringing the United States to the forefront of digital innovation with continuous infrastructure investments and centralized control. AT&T aims to capitalize on this huge opportunity by investing more in next-generation networks and accelerating fiber deployment to an additional 1 million locations annually starting in 2026. Backed by enhanced tax incentives for capital investment and a renewed spectrum policy that supports long-term network deployment, the company expects to expand into hitherto underserved rural communities that had remained elusive.
An integrated fiber expansion strategy is expected to enhance broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience. AT&T plans to deploy 5G+ service in various stadiums, arenas and practice facilities across the country, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in several airports while offering secure 5G facilities to the FirstNet network. The acquisition of mid-band spectrum (C-Band) further offers significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas.
Other Telecom Carriers Focusing on Fiber
Verizon Communications Inc. (VZ - Free Report) continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. Verizon has been aggressively expanding its fiber-optic networks to support 4G LTE and 5G wireless standards as well as wireline connections. The company remains focused on making necessary capital expenditures due to the continued expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of fiber infrastructure. The buyout of Frontier Communications has further accelerated Verizon’s fiber Internet services nationwide.
T-Mobile US Inc. (TMUS - Free Report) is steadily investing in fiber broadband expansion to reach 12-15 million fiber customers by 2030. T-Mobile has launched the Fiber Home Internet service plans with several enticing features. The services include Fiber 500, Fiber 1G, Fiber 2G and Fiber Founders Club plans. The plans mostly share similar features, with Internet speed being the primary differentiating factor. Apart from the price guarantee, the plans include unlimited data, super-fast symmetrical speed, WiFi 6 router and more. T-Mobile is gaining from healthy growth in service revenues driven by industry-leading postpaid net customer additions.
T’s Price Performance, Valuation and Estimates
T has surged 50.8% over the past year, outperforming the industry’s growth of 26.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, T trades at a forward price-to-sales ratio of 1.63, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for T’s earnings for 2025 has been static over the past 60 days.
Image: Bigstock
One Big Beautiful Bill Act Fuels AT&T's Fiber Densification
Key Takeaways
AT&T Inc. (T - Free Report) is focusing more on fiber densification, courtesy of the One Big Beautiful Bill Act that Congress recently passed. The bill is likely to spur investment and boost economic development by unlocking significant mid- and low-band spectrum, which is critical to expanding 5G capacity and coverage, particularly in rural and suburban areas. The spectrum governance and AI scaling strategies incorporated into the law are likely to help the FCC set the ball rolling for new auctions for key bands: 600MHz, 3.1–3.45GHz and parts of the 6GHz band.
This is expected to cater to the burgeoning broadband demand, bringing the United States to the forefront of digital innovation with continuous infrastructure investments and centralized control. AT&T aims to capitalize on this huge opportunity by investing more in next-generation networks and accelerating fiber deployment to an additional 1 million locations annually starting in 2026. Backed by enhanced tax incentives for capital investment and a renewed spectrum policy that supports long-term network deployment, the company expects to expand into hitherto underserved rural communities that had remained elusive.
An integrated fiber expansion strategy is expected to enhance broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost end-user experience. AT&T plans to deploy 5G+ service in various stadiums, arenas and practice facilities across the country, along with various company-owned retail stores, to revolutionize the shopping experience. In addition, the company aims to launch 5G+ in several airports while offering secure 5G facilities to the FirstNet network. The acquisition of mid-band spectrum (C-Band) further offers significant bandwidth with better propagation characteristics for optimum coverage in both rural and urban areas.
Other Telecom Carriers Focusing on Fiber
Verizon Communications Inc. (VZ - Free Report) continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. Verizon has been aggressively expanding its fiber-optic networks to support 4G LTE and 5G wireless standards as well as wireline connections. The company remains focused on making necessary capital expenditures due to the continued expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of fiber infrastructure. The buyout of Frontier Communications has further accelerated Verizon’s fiber Internet services nationwide.
T-Mobile US Inc. (TMUS - Free Report) is steadily investing in fiber broadband expansion to reach 12-15 million fiber customers by 2030. T-Mobile has launched the Fiber Home Internet service plans with several enticing features. The services include Fiber 500, Fiber 1G, Fiber 2G and Fiber Founders Club plans. The plans mostly share similar features, with Internet speed being the primary differentiating factor. Apart from the price guarantee, the plans include unlimited data, super-fast symmetrical speed, WiFi 6 router and more. T-Mobile is gaining from healthy growth in service revenues driven by industry-leading postpaid net customer additions.
T’s Price Performance, Valuation and Estimates
T has surged 50.8% over the past year, outperforming the industry’s growth of 26.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, T trades at a forward price-to-sales ratio of 1.63, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for T’s earnings for 2025 has been static over the past 60 days.
Image Source: Zacks Investment Research
T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.