Telecom giant AT (NYSE: T) is rapidly expanding its fiber internet business. Along with 5G, fiber represents one of the company's critical long-term growth opportunities. While demand for AT's legacy wireline services is in decline, the fiber business is already big enough to drive growth for the consumer wireline segment.

AT had 7.7 million fiber subscribers AT the end of the second quarter, up from 6.6 million one year prior. Fiber revenue grew by 28% year over year thanks to subscriber growth and an increase in average revenue per subscriber. On top of laying its own fiber network in its existing service areas, AT&T's fiber joint venture with BlackRock will allow the company to offer fiber services in new markets.

AT's competitors, including T-Mobile and Verizon, have been pushing wireless broadband services powered by their respective 5G networks. Unlike fiber internet, where fiber optic cable must be run to each home or business, wireless broadband works with the same 5G networks that connect tens of millions of smartphones. For the consumer, this means easy setup with minimal fuss. For the wireless carrier, it means no costly build-outs of fiber networks.

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Source Fool.com