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AT&T puts $3 billion behind expanding a key service for customers

AT&T is betting big on a new multiyear partnership worth more than $3 billion to expand a vital service for internet customers as competition grows.  

The broadband market has intensified in recent months as AT&T rivals, Verizon and T-Mobile, have made significant changes to attract and retain broadband customers. 

For instance, Verizon has been expanding its fiber broadband reach nationwide through its $20 billion acquisition of Frontier, which was finalized in January. T-Mobile has taken a different approach, updating its fiber internet offerings in April with lower entry-level pricing.

AT&T’s competitive landscape also extends beyond traditional telecom rivals. SpaceX’s Starlink is becoming a larger force in the broadband market, with the satellite internet provider surpassing 12 million high-speed internet customers worldwide this year.

AT&T partners with Corning to expand fiber internet reach

Against this backdrop, AT&T has partnered with materials science company Corning in a $3 billion, multiyear partnership. In the agreement, Corning will supply the fiber and cable AT&T needs to “bring fast, reliable internet to more Americans as demand grows,” according to a recent press release. 

AT&T claims that “Americans are using more data than ever” as the average AT&T Fiber household now uses more than 1 terabyte per month, which is five times more than in 2016. 

The carrier said “that number is expected to keep climbing,” reaching 2-2.5 terabytes by 2030. This is due to consumers increasingly streaming, gaming, conducting video calls, and using cloud services and artificial intelligence on a daily basis. 

Related: AT&T launches free healthcare perk for customers

AT&T states that “only” fiber can answer this rising demand for data, as it can support these online activities carried out by consumers quickly and reliably. The carrier claims that its fiber internet service can deliver speeds “3x faster than satellite services.”

Satellite will only complement its networks by helping extend connectivity in about 2% of remote locations where fiber and wireless may be unavailable.

“Fiber remains the gold standard for superior internet connectivity, and AT&T is the nation’s leader in fiber,” said AT&T CEO John Stankey in the press release. “Fiber’s speed, reliability, and capacity remain unmatched for any home or business.”

AT&T said that its deal with Corning will help it provide “fast, reliable internet” to 60 million Americans by the end of 2030. 

AT&T has entered a $3 billion partnership with Corning to expand its fiber internet service.

Jonathan Weiss/Shutterstock

The consumer trend behind AT&T’s rapid broadband growth

AT&T’s $3 billion partnership with Corning comes as its broadband services (fiber and fixed wireless internet) are rapidly gaining customers. 

U.S. consumers have increasingly turned to alternatives to traditional internet services provided by cable companies, favoring fiber and fixed wireless internet options offered by wireless carriers.

A CableTV.com survey in December last year found that 47% of U.S. consumers use fiber and 5G home internet services, compared with 40% who rely on cable internet. The share of consumers using cable internet fell 24% between 2024 and 2025.

More AT&T News:

“Cable ISPs have long had a reputation for restrictive pricing contracts, annual bill hikes, and tacked-on fees,” said Eric Chiu, CableTV.com internet editor, in the survey release. 

“Cable internet networks are still entrenched throughout much of the U.S., but between fiber’s growing footprint and aggressive 5G home internet marketing, consumers clearly know cable’s no longer the sole option in town,” he continued.

The trend continues to gain steam. For instance, cable operators Spectrum and Comcast lost a combined 339,000 U.S. internet customers in the second quarter of 2026, according to a data analysis from Recon Analytics.

Meanwhile, AT&T added 646,000 internet customers during the quarter, while Verizon gained 348,000 and T-Mobile welcomed roughly 520,000.

In a recent analyst note, Wolfe Research analyst Peter Supino said broadband competition is expected to continue to heat up over the next few years, according to a September Fierce Network report.  

“On the demand side, DSL conversions should dry up in 2027 or 2028,” wrote Supino. “On the supply side, fiber construction and promotion should maintain 2026’s peak rates, while Starlink supply should multiply. If Starlink cuts service prices to fill up newly deployed capacity, FWA will decelerate, and cable will shrink faster.”

Related: Spectrum hits a snag as it works to curb internet customer exodus

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