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Can AT&T's Fiber Densification Help Bridge the Digital Divide?
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Key Takeaways
T is expanding fiber coverage to underserved areas through a deal with PRIME FiBER in Arizona.
T targets 60M fiber locations by 2030, supporting 5G growth and improved broadband access.
5G rollouts in stadiums, airports and stores aim to enhance user experience and retail engagement.
AT&T Inc. (T - Free Report) is focusing on fiber densification across the country to help bridge the digital divide by expanding into hitherto underserved communities that had remained elusive. The company had inked an agreement with PRIME FiBER, an open-access fiber infrastructure provider, to offer wholesale fiber broadband services in Arizona. PRIME FiBER recently started building open-access infrastructure in Arizona as part of this agreement.
AT&T aims to reach 60 million fiber locations in the country by the end of 2030. The fiber-optic cable network is vital for backhaul and the last-mile local loop, which wireless service providers like AT&T require for 5G deployment. Fiber networks are also essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage.
An integrated fiber expansion strategy is expected to improve broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost the 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, superfast symmetrical speed, Wi-Fi 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 46.5% over the past year, outperforming the industry’s growth of 21.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, T trades at a forward price-to-sales ratio of 1.59, 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
Can AT&T's Fiber Densification Help Bridge the Digital Divide?
Key Takeaways
AT&T Inc. (T - Free Report) is focusing on fiber densification across the country to help bridge the digital divide by expanding into hitherto underserved communities that had remained elusive. The company had inked an agreement with PRIME FiBER, an open-access fiber infrastructure provider, to offer wholesale fiber broadband services in Arizona. PRIME FiBER recently started building open-access infrastructure in Arizona as part of this agreement.
AT&T aims to reach 60 million fiber locations in the country by the end of 2030. The fiber-optic cable network is vital for backhaul and the last-mile local loop, which wireless service providers like AT&T require for 5G deployment. Fiber networks are also essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage.
An integrated fiber expansion strategy is expected to improve broadband connectivity for both enterprise and consumer markets, while steady 5G deployments are likely to boost the 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, superfast symmetrical speed, Wi-Fi 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 46.5% over the past year, outperforming the industry’s growth of 21.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, T trades at a forward price-to-sales ratio of 1.59, 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.