AT&T’s 5G and Fiber Bundles Drive Record Holiday-Quarter Growth

AT&T’s innovative strategy of bundling 5G wireless services with high-speed fiber internet delivered impressive subscriber growth in the fourth quarter, surpassing market expectations. The telecom giant added 482,000 net monthly bill-paying wireless phone subscribers during the holiday season, outpacing analysts’ forecast of 424,550, according to Visible Alpha.

As the U.S. wireless market nears saturation, AT&T’s focus on combining premium 5G mobile plans with robust fiber internet has fueled its growth. The company’s fiber segment gained 307,000 new customers in Q4, marking its best holiday-quarter performance and a significant jump from 226,000 additions in the previous quarter.

Jonathan Chaplin, an analyst at New Street Research, highlighted the long-term potential of AT&T’s fiber investments, stating, “Broadband is a stronger business than mobile and will eventually trade at a higher multiple.”

CEO John Stankey underscored the company’s commitment to building the most extensive and efficient broadband network in the U.S., which is expected to reach over 50 million locations by 2029.

The holiday quarter traditionally boosts subscriber growth due to Black Friday promotions, trade-in offers for new devices like iPhones, and seasonal gifting. This momentum contributed to a 1% increase in total revenue, reaching $32.3 billion, slightly above analysts’ estimates.

AT&T also introduced bill credits for network outages in January 2025 to enhance customer retention in a competitive market. With free cash flow projected to exceed $18 billion by 2027, AT&T is poised for sustained growth in the telecom sector.

Source: CNBC