AT&T Is in Talks With Investors on Fiber Build-Out

AT&T is in discussions to create a joint venture that would invest billions of dollars on fiber-optic network expansion. The company is working with Morgan Stanley to help bring in an infrastructure partner to the venture, which is expected to be valued at $10 billion to $15 billion. AT&T is embarking on its biggest plan yet to pursue broadband customers outside its traditional 21-state local phone territory. The company has already started to take on fiber projects in new states such as Arizona and plans to expand to more in an effort to boost subscriber growth. Chief Executive Officer John Stankey has been traveling to cities such as Mesa, Arizona, and Evansville, Indiana, to kick off projects, including public-private partnerships that can serve as a model to tap into the nearly $100 billion in federal broadband funding available. AT&T’s decision to move into new markets hinges on at least three factors: the area has to be underserved with broadband, profitable for AT&T, and AT&T also has to be the first provider of fiber to the home.