HICKORY – AT&T has signed a multi-year agreement worth more than $3 billion to buy fiber and cable from Corning, linking the telecommunications company’s network expansion to Corning’s manufacturing footprint in North Carolina.
The agreement calls for Corning to supply fiber and cable as AT&T expands its network to meet rising data demand. AT&T said the deal supports its goal of reaching 60 million Americans with fiber by the end of 2030. The company also said the financial impact is reflected in the outlook and capital allocation plan it issued with its second-quarter results.
The North Carolina business consequence runs through Corning’s existing production network. Corning says it manufactures optical cable at two sites in Hickory and at plants in Newton and Winston-Salem. It manufactures optical fiber in Concord and Wilmington, and Charlotte is home to the company’s Optical Communications headquarters. AT&T said Corning’s North Carolina facilities have created hundreds of jobs. The companies did not disclose production volumes or any employment change tied specifically to the new agreement.
The contract arrives as artificial intelligence, cloud computing and connected devices increase demand for higher-capacity networks. AT&T said its average fiber household now uses more than one terabyte of data each month, five times the 2016 level, and expects average monthly use to reach 2 to 2.5 terabytes by 2030.
Reuters reported that Corning shares rose 3.3% in premarket trading after the agreement was announced, providing an immediate market response to the deal. Corning has manufactured optical fiber and cable in North Carolina for more than 40 years.