What's Happening?
AT&T has reported significant growth in its broadband subscriber base for the third quarter of 2025, driven by its fixed wireless access (FWA) and fiber offerings. The company's flagship 5G FWA service, Internet Air, added 270,000 new subscribers, bringing
the total to 1.27 million. This growth exceeded analyst expectations and poses a challenge to cable operators struggling with subscriber trends. AT&T is also expanding its fiber network, adding 288,000 fiber subscribers in the quarter, reaching a total of 10.12 million. The company plans to deploy fiber to 60 million locations by 2030. Additionally, AT&T is acquiring mid-band spectrum from EchoStar to enhance its Internet Air service, aiming to cover two-thirds of the U.S. population by mid-November.
Why It's Important?
The expansion of AT&T's broadband services is significant for the telecommunications industry, particularly as it challenges traditional cable operators. The growth in FWA and fiber subscribers indicates a shift in consumer preference towards more flexible and high-speed internet solutions. This trend could lead to increased competition and innovation in the broadband market. For AT&T, the expansion represents a strategic move to capture a larger market share and enhance its service offerings. The acquisition of additional spectrum from EchoStar further positions AT&T to improve its network capabilities and reach more customers, potentially leading to increased revenue and market dominance.
What's Next?
AT&T's continued investment in expanding its broadband infrastructure suggests a focus on long-term growth and competitiveness. The deployment of the 3.45GHz mid-band spectrum is expected to enhance the reach and performance of its Internet Air service. As AT&T broadens its fiber network, it may attract more residential and business customers, further solidifying its position in the market. The company's strategy to phase out its copper network and transition to fiber and FWA could set a precedent for other telecom operators. Stakeholders, including investors and competitors, will likely monitor AT&T's progress and market impact closely.
