AT&T adds 11 metro areas to its fiber buildout plans

AT&T is adding 11 metro markets to its fiber buildout plans. AT&T said it would “exceed the 12.5 million locations” it previously announced for its all-fiber deployment over the next three years.

Industry analysts applauded the company’s announcement. “For AT&T the timing of this announcement makes sense to us, as it is coming ahead of the Over the Top (OTT) wireless / broadband plans. In [AT&T]'s view, the critical part of the bundle is wireless (where it has over 100MM subs) and the broadband pipe to the home (where users can use OTT video services),” Wells Fargo analyst Jennifer Fritzsche wrote about AT&T’s announcement. “In our view, ahead of the launch of these plans, there is a real incentive to illustrate to potential customers' its commitment to spending on the broadband pipe. If AT&T is able to capture BOTH the wireless and broadband user with this offering, it makes that revenue all the more ‘sticker’ longer term.”

AT&T has been expanding its fiber deployment across the country. In August the company brought high-speed fiber to neighborhoods in Sacramento, CA and Cleveland, OH, as well as eight markets in the west, midwest, and south. In total, the company plans to bring gigabit service to 67 new metro areas. To date, the company has deployed all-fiber networks in parts of 29 metro areas, reaching 3 million customer locations, with plans to deploy in 45 metro areas by the end of this year. AT&T’s business plan is focused on new opportunities to bundle broadband with video service now that AT&T has integrated DirecTV.

Links:

AT&T rebrands FTTP business from GigaPower to ‘AT&T Fiber,’ adds 11 new markets to rollout plans (FierceTelecom, Oct. 5, 2016)

AT&T expands gigabit service to Sacramento, Cleveland (Speed Matters, Aug. 22, 2016)

AT&T expands fiber service in eight cities (Speed Matters, May 17, 2016)