To bring an infrastructural partner, American Telephone and Telegraph(AT&T) is collaborating with Morgan Stanley and expects to bring in around $15 billion dollars to the project
American Telephone and Telegraph (AT&T) Inc., the telecommunications giant headquartered in Dallas, Texas is in discussions to create a joint venture that would invest billions for fiber optic network expansion. To bring an infrastructural partner, AT&T is collaborating with Morgan Stanley and expects to bring in around $15 billion dollars to the project, reports Bloomberg. The firm is in the early stages of discussion and is in hopes to find a potential investor by this year, but it could fall and slide into the coming year as well according to the reports. The official confirmation regarding the matter is yet to be published by American Telephone and Telegraph and Morgan Stanley.
The rise of digital infrastructure and the expansion of the fiber optics network has been increasing in the past years and many companies invest in the same, with alternative asset managers such as KKR &co., Brookfield Asset Management, and Blackstone Inc. jostling for assets. Firms like Lumos have invested nearly $50 million recently to bring 100% fiber optic internet to Durham and Orange counties providing high-speed 100% fiber optic internet service to the residents and business organizations in the area.
Fiber optics networks can support higher bandwidth capabilities and can travel without having much of a signal boost. It can also reach up to a speed of 940 megabytes per second, making the internet experience much faster and smoother. As a result, many corporations are turning their heads to invest in such high-priced infrastructure projects. Intel in the month of august 2022, struck a $ 30 billion deal with Brookfield in Arizona chip factory expansion.
American Telephone and Telegraph is planning to pursue broadband customers outside its conventional local phone regions. The company is launching a dozen 5G “Edge Zones” across the US by the end of this year to enable the most advanced network services. The company is planning new projects in states like Arizona to enhance the company’s subscriber growth. The company has also announced plans to offer internet and wireless phone services to remote areas through a series of low-Earth orbit satellites, which are still being launched. The initial use of satellites, however, will be for emergency services like FirstNet, which is a government-run network.
American Telephone and Telegraph decides to move into new markets and the Chief Executive Officer of the firm John Stankey sees the fiber optic network as a path that provides the firm with long-term growth. Fiber optics provide long-term sustainability compared to wireless connections or copper wire connections. One of the disadvantages of a fiber optic network is that it is more expensive than copper wire and requires huge investments especially because it requires advanced equipment and labor. American Telephone and Telegraph (AT&T) focuses on peers Verizon Communications Inc., fiber and T-Mobile US Inc. have been selling wireless home internet as a lower-cost alternative to fiber, which accounts for most of the industry’s broadband growth this year.
About American Telephone and Telegraph (AT&T)
AT&T is a telecommunications company headquartered in Dallas, Texas that specializes in providing Enterprise Applications & Managed Hosting Solutions, Wireless Services, and U-Verse. AT&T connects millions of people and delivers the most advanced technology to its customers.