Sept 29 (Reuters) - AT&T on Tuesday said it had signed a multi-year deal worth more than $3 billion with Corning to procure fiber and cable, as the telecom giant expands its network to meet surging demand for data.
Corning shares rose 3.3% in premarket trading.
Fiber network build-out has emerged as a critical growth area for the telecom industry as the wireless market matures and internet usage surges.
Growing demand for data-intensive services, including AI workloads, cloud computing and connected devices, is increasing the need for faster, more resilient and scalable fiber networks.
"The average AT&T Fiber household now uses more than 1 terabyte each month, 5x more than in 2016. And that number is expected to keep climbing," AT&T said.
Fiber is also seen as a critical component for telecom companies because it can quickly carry data for services ranging from video calls and movie streaming to AI tools.
The company expects aims to reach 60 million fiber locations by the end of the decade as part of its multi-billion dollar infrastructure expansion.
Its $5.75 billion acquisition of Lumen's fiber business has further expanded its fiber footprint. The company has committed more than $250 billion over five years to strengthen US connectivity infrastructure.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Tasim Zahid)
