AT&T CEO reveals strategic focus on fiber drives revenue growth

AT&T CEO John T. Stankey has revealed that the strategic focus on fiber continues to drive growth and elevate its broadband offerings through significant investments and operational excellence.

AT&T 5G business
AT&T 5G business

Fourth-quarter capital expenditures of AT&T totaled $6.8 billion, contributing to a full-year capital investment of approximately $22 billion, at the high end of the company’s guidance.

This substantial investment underscores AT&T’s dedication to expanding its fiber network, which remains a pivotal element of its long-term strategy. In the fourth quarter, fiber revenue grew 17.8 percent, propelling an annual broadband revenue increase of over 7 percent, driven by the addition of 307,000 net fiber subscribers, marking a record high for a single quarter.

The company’s fiber average revenue per user (ARPU) rose 4.7 percent year over year to $71.71, supported by strategic pricing and improved plan mix.

AT&T Fiber’s penetration rate increased to 40 percent, with four in ten fiber households also subscribing to AT&T wireless services. This strong convergence of fiber and wireless underscores the complementary nature of AT&T’s offerings and highlights the enhanced value proposition provided to customers. The fiber segment’s profitability extends beyond standalone performance, playing a crucial role in bolstering the company’s wireless business.

Looking ahead to 2025, AT&T anticipates mid-teen growth in fiber revenue, consistent with its multiyear outlook. This growth is underpinned by high-margin fiber revenues and the ongoing shift away from legacy copper infrastructure.

Consumer wireline EBITDA grew approximately 10 percent in both the quarter and full year, driven by fiber expansion and the decommissioning of copper services. AT&T’s fiber-centric capital allocation strategy reinforces its commitment to delivering high-quality broadband experiences while maximizing long-term returns.

In 2024, AT&T achieved six consecutive quarters of positive broadband net additions, buoyed by robust demand for AT&T Fiber and AT&T Internet Air. With over $22 billion invested in the year, AT&T continues to lead the industry in capital expenditure, creating a high-capacity, low-cost, converged broadband network.

The company has added 1 million or more fiber subscribers for seven consecutive years, demonstrating sustained customer demand. AT&T Fiber was also named America’s fastest internet by Ookla, further validating its technological superiority and market leadership.

AT&T’s modernization efforts include the transition from legacy copper infrastructure to a more advanced fiber network. With FCC approval to phase out copper services in select wire centers, AT&T is making significant strides toward its goal of exiting copper network operations across most of its footprint by 2029.

This shift enables the company to deliver superior services, reduce operational costs, and drive efficiency. AT&T also plans to integrate artificial intelligence and modernize technology stacks to support its $3 billion-plus run rate cost savings target by 2027.

For 2025, AT&T intends to maintain capital investments at approximately $22 billion, continuing to expand its fiber and 5G networks while building a durable franchise. The AT&T Guarantee exemplifies the company’s commitment to customer satisfaction, offering a unique promise of reliable connectivity, competitive deals, and exceptional service.

By owning and operating its fiber and 5G networks, AT&T can deliver superior customer experiences while differentiating itself in the marketplace. This comprehensive approach positions AT&T to sustain its competitive advantage, drive growth, and create value for stakeholders.

Baburajan Kizhakedath

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