AT&T Signs $1 Billion Fiber Supply Agreement with Corning

AT&T (NYSE:T) has signed a multi-year agreement worth $1 billion with Corning (NYSE:GLW) to purchase fiber, cable, and connectivity solutions. This move is part of the telecommunications company's strategy to expand its high-speed internet offerings. The agreement is seen as a significant step as it aims to enhance AT&T's network infrastructure and improve service performance while also trying to control distribution costs.

As the U.S. wireless market experiences slower growth, telecom companies like AT&T and its competitor Verizon (NYSE:VZ) are increasingly focusing on high-speed internet services. Traditionally dominated by broadband providers like Comcast (NASDAQ:CMCSA), these services are becoming essential revenue streams for telecom operators. AT&T has also noticed a rise in demand for bundled plans that combine high-speed fiber data and wireless phone services at discounted prices.

AT&T's current network expansion efforts have resulted in 28.3 million fiber passings as of the third quarter, with the company on track to surpass 30 million fiber passings by the end of 2025. However, the company's fiber business growth fell below analyst expectations in the third quarter, adding 226,000 customers compared to the anticipated 257,860. This decline is largely attributed to a work stoppage that began in August in the southeastern region of the U.S., which impacted fiber installations.