Nokia and AT&T reach five-year agreement to accelerate fiber optic network upgrade

Recently, Nokia announced a five-year agreement with AT&T. This agreement aims to fully support and accelerate AT&T's fiber network expansion and upgrade plans by deploying Nokia's Lightspan MF platform and Altiplano access controllers.

This cooperation not only marks a deep optimization of the existing fiber optic network, but also heralds the early layout and application of the next generation fiber optic technology.

Our fiber optic solution will help AT&T maximize the use of existing fiber optic resources, enabling seamless integration of all PON technologies on the same platform, from the current 10/25G PON to the future 50/100G PON, laying a high-speed path for AT&T's network development, "emphasized Sandy Motley, President of Nokia's Fixed Network Business.

AT&T Network Manager Chris Sambar stated that fiber optic, as the core of infrastructure, is crucial for driving cutting-edge services such as Industry 4.0, smart cities, IoT applications, and ultra high definition streaming. This collaboration will not only significantly enhance the broadband experience for millions of customers, but also lay a solid foundation for future digital innovation.

The deployment is progressing smoothly and there is no need for asset acquisition
It is worth noting that AT&T has shown strong confidence in expanding its fiber optic business and has clearly stated that there is no need to expand its fiber optic business through acquisitions.

Recently, Chief Financial Officer Pascal Desroches made it clear in public that the company is achieving widespread coverage of fiber optic networks through organic growth rather than external acquisitions. Our vision for fiber optics is grand and firm, and we are steadily moving forward without the need to acquire scale through transactions.

He further pointed out that unlike its competitor Verizon's recent large-scale acquisition, AT&T is more inclined to create long-term value by building its own fiber assets.

AT&T remains the largest commercial fiber optic provider in the United States. It has already connected fiber optic cables to many large commercial buildings, and its fiber optic network can also be used to further penetrate small and medium-sized enterprises. As of the end of the second quarter, AT&T has covered nearly 28 million consumer and commercial locations, and expects to exceed 30 million locations by the end of 2025.

This rapid progress is not only reflected in the steady growth of user numbers, but also in the significant improvement of user satisfaction and service quality. Desroches revealed that the integration of fiber optic and wireless services has significantly reduced user churn rates and increased market penetration, demonstrating the strong competitiveness of the integration strategy.

With the accelerated deployment of traditional telecommunications companies in the field of fiber optic broadband, the long-term dominant position of cable TV companies in the broadband market is facing unprecedented challenges. Jeff Heynen, Vice President of Dell'Oro, pointed out that the expansion of fiber optic and converged services is the key to leveraging user preference shifts and ending the dominance of cable television.

Strengthen wireless/wired integration
Like Verizon and other suppliers with wireless assets, AT&T sees an opportunity to provide converged services.
AT&T is already at the forefront of converged services. In the market where it provides fiber optic and wireless services, the customer churn rate has decreased.

Desroches said, "Fiber optic is a product that our customers love. After combining fiber optic with wireless, we found that the user churn rate of fiber optic and wireless has significantly decreased.

In addition, in the market where it offers fiber broadband today, AT&T's wireless penetration rate has also increased: "In the market where we offer fiber, our penetration rate is 500 basis points higher than the national average. The benefits are obvious. But that doesn't mean you can't sell fiber or wireless services alone, but the advantages of convergence are powerful, and we have a long way to go to increase more converged users. We are building fiber every day.

In recent quarters, Comcast and Charter have been impacted by fiber optic and fixed wireless services for broadband users. In the second quarter, Comcast gained 120000 broadband users, while Charter lost 154000 users.

Jeff Heynen, Vice President of Dell'Oro, said that if telecom companies realize that fiber and convergence are the key to ending cable TV's dominance in the United States, then expanding networks and fiber coverage is the best way to leverage this shift in user preferences.

The cooperation between Nokia and AT&T is not only a win-win situation for technology and market, but also a profound layout for the future digital society. With the continuous upgrading of fiber optic networks and the deepening of integrated services, a faster, more intelligent, and interconnected world is approaching us.

Source: OFweek