AT&T: Fiber offers 'meaningful uplift' in wireless penetration

As AT&T continues ramping up its fiber business – reaching 18.5 million passings in Q3 – it aims to leverage its fiber strategy to grow wireless customers, according to CFO Pascal Desroches. “In 5-10 years from now I just don’t see consumers accepting anything other than fiber,” Desroches said. “Also I think the power 5G will bring will make wireless relationships even more valuable. And we are able to provide both with our owner’s economics.” When AT&T offers both fiber and 5G, it sees a “meaningful uplift” in its wireless penetration, Desroches added. Once customers get hooked on fiber service, it becomes “much easier to sell them on” wireless. “Having that and the perception that fiber brings for them a quality and consumer affinity is just extraordinary,” he said. “It’s a play we really believe in…the returns are much more attractive if you have both customers.” The operator previously stated it wants to reach 30 million fiber passings by 2025. Desroches noted AT&T is “penetrating very well” with its current fiber builds, echoing CEO John Stankey’s words on the company’s third-quarter earnings call. Desroches chalked up AT&T’s success with fiber to increased consumer awareness and a more hybrid workforce. AT&T is “more aggressively” targeting the small and mid-sized business market with its fiber offering.