AT&T Achieves Significant Fiber Subscriber Growth in Q4 2024
AT&T has marked another strong quarter for its fiber network, with the company adding over 300,000 new fiber connections during Q4 2024. This growth is part of the company’s broader strategy to expand its fiber footprint across the United States.
2024 Fiber Additions and Year-End Performance
In total, AT&T added 307,000 new fiber subscribers in Q4 2024, bringing the total fiber customer base to over 8 million. Over the course of 2024, the company exceeded its fiber growth targets by adding more than one million fiber customers. This performance highlights the success of AT&T’s fiber strategy, which has become a key focus for the company.
AT&T’s Ambitious Fiber Expansion Plans
CEO John Stankey has outlined plans to significantly increase AT&T’s fiber footprint, aiming to reach 50 million fiber locations by 2029. Out of these, approximately 45 million will come from organic deployments, while the remaining 5 million will be through its fiber joint venture, Gigapower, with investment firm BlackRock. Currently, AT&T’s fiber network covers nearly 29 million passings, with ongoing efforts to extend that coverage.
Plans for Copper Network Retirement
AT&T is also taking steps to retire its legacy copper network in favor of more modern and efficient fiber infrastructure. As part of this transition, the company is set to stop selling legacy products in around 1,300 wire centers, which are part of its 4,600 copper network locations. This strategic move is designed to phase out outdated technology and streamline operations.
John Stankey emphasized the importance of this move, noting that it will serve as a template for the planned shift towards a more advanced communications infrastructure. AT&T plans to file detailed requests with the FCC to accelerate the retirement process, aiming to further reduce its reliance on copper infrastructure.
Recent Sale of Central Offices Signals Shift
In line with its copper network retirement strategy, AT&T recently agreed to sell over 70 Central Office properties across the U.S. in a deal worth $850 million. This sale-leaseback arrangement with Reign Capital marks a significant move as AT&T modernizes its infrastructure. Other companies, such as Ziply and Frontier, are also exploring ways to repurpose their old central offices, with Ziply converting some into colocation data centers.
Strong Financial Results in Q4 and Full Year
AT&T’s financial performance for Q4 2024 showed positive results, with the company posting a revenue of $32.3 billion, reflecting a 1% increase. Full-year revenue for 2024 hit $122.3 billion. The carrier’s net income for Q4 surged to $4.4 billion, a significant jump from $2.6 billion in the same period the previous year. These results highlight the success of AT&T’s investments in both its fiber network and wireless services.
Looking Ahead: AT&T’s 2025 Growth Strategy
Looking ahead, AT&T is poised to continue its growth trajectory. The company’s focus will be on expanding its fiber network, modernizing its wireless infrastructure, and increasing shareholder value. Stankey hinted at plans to initiate share repurchases in the second half of 2025, signaling confidence in the company’s future performance.
Frequently Asked Questions (FAQ)
1. Why is AT&T retiring its copper network?
AT&T is transitioning from its copper network to fiber to modernize its infrastructure and provide more efficient, reliable services. The company aims to improve performance and meet growing consumer demand for faster, more reliable internet.
2. How many fiber customers does AT&T have?
As of the end of 2024, AT&T serves over 8 million fiber customers and is rapidly expanding its fiber network with plans to reach 50 million locations by 2029.
3. What is AT&T’s Gigapower joint venture?
Gigapower is a fiber joint venture between AT&T and BlackRock, designed to accelerate fiber deployment in the U.S. This partnership aims to add over 5 million fiber passings by 2029.
4. How much did AT&T’s revenue grow in Q4 2024?
AT&T reported Q4 2024 revenue of $32.3 billion, marking a 1% increase compared to the same quarter in the previous year.
5. What is AT&T’s plan for its central offices?
AT&T is selling over 70 of its Central Offices (COs) in a deal worth $850 million, as part of its broader strategy to shift away from its legacy copper network and invest in fiber infrastructure.
