The Cost of Overbuilding

Some big internet service providers have big plans for more fiber expansion. AT&T, for example, plans to build 21 million fiber passings to meet a goal of 50 million passings by the end of 2029. I’ve followed AT&T’s expansion in various communities, and the company has built fiber over the last five years where the cost to do so was the lowest, so this expansion plan perplexes me. It seems to me that for AT&T to meet its target of 50 million passings it is now willing to spend more per passing than in the past. Perhaps that willingness is based on the success the company has in converting customers to fiber in overbuilt neighborhoods. Only AT&T knows the details behind its decision to expand rapidly. I find it interesting that the company is suddenly willing to build fiber in neighborhoods that were not in its plans just a few years ago.