AT&T inks multi-year fiber agreement with Corning to address BEAD requirements
AT&T secured a multi-year purchase agreement with Corning to provide fiber, cable, and connectivity solutions that will enable it to expand its fiber broadband network and meet the build-out requirements of the Broadband Equity, Access, and Deployment program (BEAD) program.
As Corning’s most significant customer with preferential volume status for Corning’s connectivity solutions, AT&T can accelerate its network expansion and enhance network performance while minimizing deployment costs. The agreement, valued at over $1 billion, builds on the decades-long collaboration between AT&T and Corning.
“This new multi-year agreement with Corning helps us to connect more households, communities, and businesses with the high-speed, reliable internet they need to thrive in a digital world,” said John Stankey, CEO of AT&T.
AT&T will use the latest additions to Corning's Evolv® portfolio of connectivity solutions, including Evolv® FlexNAP™ with Multifiber Pushlok® Technology, which will be compliant with the Build America, Buy America (BABA) provisions of the BEAD program.
The service provider has been developing public-private broadband partnerships in states like Indiana, Kansas, South Carolina and others to expand the availability of fiber-based broadband services. Today, these communities have been leveraging current American Rescue Plan Act funding for broadband, but these partnerships will prepare AT&T as states move forward with BEAD plans.
Given the federal government's strict deployment timelines for the BEAD program, Corning’s Evolv comes as service providers grapple with scaling their builds amid a shortage of trained technicians to conduct installations.
While the agreement with AT&T is new, the seeds of this relationship were planted in 2022 when Corning announced it would build a cable manufacturing plant in Gilbert, AZ.
At that time, Corning said the plant would meet increased demand for broadband fiber plants, mainly because of what it termed “a long-term relationship with AT&T.”
Growing fiber base
AT&T has continued to increase its fiber footprint, a trend that continued into the third quarter.
This growth came during a challenging time for the telco.
Despite the effect of two hurricanes--Helene and Milton--and a 30-day worker strike in the Southeast portion of the company’s footprint, AT&T added 226,000 AT&T Fiber subscribers in the quarter.
The company estimates it had 50,000 fewer net subscriber additions from work stoppage related to the effects of Hurricanes Helene and Milton and estimated a total financial impact of about $115 million.
AT&T’s AT&T Fiber revenues in the third quarter grew nearly 17%.
“These consistent results make it clear that our fiber investment is generating attractive returns with improved operating leverage as we transition from legacy networks,” said Stankey. “Overall, the underlying momentum with 5G and fiber positions us to close the year strong."
Footprint expansion continues
AT&T is expanding its network through organic investment and its Gigapower open-access joint venture with BlackRock. The telco has announced several commercial open-access agreements.
AT&T recently delivered its fifth straight quarter of broadband subscriber growth, passing 28.3 million consumer and business locations, and remains on pace to pass over 30 million locations by the end of 2025.
During its third-quarter earnings call, Pascal Desroches, CFO of AT&T, told investors that it passed more than 28 million consumer and business locations with fiber and remains on track to pass 30 million fiber locations by the end of 2025.
“The better-than-expected returns we’re seeing on our fiber investment potentially expand our opportunity to go beyond our initial build target by roughly 10 million to 15 million additional locations,” he said.
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Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.