AT&T signs $3 billion-plus fiber-optic deal with Corning

AT&T announced on Tuesday that it has signed a multi-year deal worth over $3 billion with Corning for fiber-optic cable, as Reuters reports, as the telecom giant expands its network to meet surging data demand.

Corning shares rose 3.3% in premarket trading after the announcement. Building fiber networks has become a critical growth area for the telecom industry as the mobile phone market matures and internet use grows rapidly.

According to Reuters, rising demand for data-intensive services — including artificial intelligence workloads, cloud computing and connected devices — is driving the need for faster, more resilient and more scalable fiber networks.

“The average AT&T Fiber household now uses over 1 terabyte every month, 5 times more than in 2016. And that number is expected to keep growing,” the company said. Fiber is also considered a critical component for telecom companies because it can quickly carry data for services ranging from video calls and movie streaming to AI tools.

The company aims to reach 60 million locations with fiber by the end of the decade as part of its multi-billion-dollar infrastructure expansion. Its $5.75 billion acquisition of Lumen’s fiber business has further extended its footprint, and the company has committed over $250 billion over five years to strengthen connectivity infrastructure in the US.