While the wireless business is the largest contributor to AT&T’s (T 0.64%) revenue by far, the fiber internet business is proving to be a potent growth opportunity. Capturing that growth comes at a cost: Building out a fiber network is capital-intensive, requiring vast outlays with no guarantee that consumers and businesses will sign up for service.
AT&T operates a vast legacy wireline network that serves consumers and businesses, but that business is in perpetual decline. Even the company’s non-fiber broadband service is slowly eroding as subscribers flee. Wireline service revenue from businesses is dropping particularly quickly, down 11% year over year in the fourth quarter of 2023.
AT&T’s fiber internet business is already big enough and growing fast enough to push overall consumer broadband revenue and consumer wireline revenue higher. AT&T expects broadband revenue to rise by…
