en.Wedoany.com Reported - Pascal Desroches, Senior Executive Vice President and Chief Financial Officer of AT&T (NYSE: T), reiterated at the Mizuho Financial Group Technology Conference that the company's annual capital expenditure target is $23 billion to $24 billion by 2028. This investment level is designed to address the growing workload demands of artificial intelligence in areas such as autonomous vehicles, drones, and smart devices. Desroches emphasized that fiber connectivity is the foundation for AI operations, and AT&T's fiber network can provide symmetric services, high bandwidth, and low latency at the lowest delivery cost.

Desroches noted that AT&T is focused on achieving organic growth through investment. The company's recent acquisitions of mid-band and low-band spectrum from EchoStar (Nasdaq: SATS) and fiber-to-the-home markets from Lumen Technologies (NYSE: LUMN) support its convergence strategy. For every fiber pass, AT&T sells both broadband and wireless services. Through the Lumen acquisition, AT&T plans to expand its overall fiber footprint to 40 million households by the end of 2026, with a target of exceeding 60 million households by 2030. In these acquired assets, the wireless-fiber broadband convergence rates are 25% and 40%, respectively, far below AT&T's own footprint, creating upselling potential.

Additionally, AT&T is deploying fixed wireless access services on mid-band spectrum such as 3.45 GHz. The company prioritizes fiber while taking a "surgical" approach to fixed wireless access, leveraging idle mobile capacity to attract customers before fiber deployment or to replace traditional copper-based DSL, but not as a standalone service. In urban and suburban areas, AT&T believes terrestrial infrastructure has a lower per-bit delivery cost. Looking ahead, the company expects to collaborate with different satellite providers to bridge coverage gaps in remote areas.

Desroches stated that AT&T does not need to acquire other assets, but only needs to execute and optimize existing ones, including decommissioning copper equipment, modernizing wireless networks, and expanding broadband coverage to build an AI-ready network.

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