AT&T signs over $3 billion fiber deal with Corning — Channel NewsAsia

In the United States, telecommunications company AT&T has signed a multi-year agreement worth more than $3 billion with manufacturer Corning to purchase fiber optics and cables. Channel NewsAsia reports, citing Reuters. The deal is expected to support the expansion of AT&T’s network amid growing demand for data transmission.

Expansion of the fiber-optic network

AT&T plans to cover 60 million locations with its fiber-optic network by the end of the decade. The company also said that its $5.75 billion acquisition of Lumen’s fiber-optic business expanded its network presence.

According to AT&T, the average household connected to its fiber-optic network now uses more than 1 terabyte of data per month. This is five times more than in 2016, and the figure will continue to grow, according to the company.

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Demand for data transmission

Building fiber-optic networks has become one of the key growth areas for the telecommunications industry as the wireless market matures and internet use increases. Demand for data-intensive services, including artificial intelligence tools, cloud computing and connected devices, is increasing the need for faster and scalable networks.

Fiber optics enable the rapid transmission of data for video calls, movie streaming and artificial intelligence tools. Following the announcement of the deal, Corning shares rose 3.3% in premarket trading.

AT&T said it will invest more than $250 billion over five years to strengthen communications infrastructure in the United States.