Mobile Carriers Push Fiber Investments Amid Growing Demand for Convergence
All three national wireless carriers - AT&T, Verizon, and T-Mobile - are expanding their fiber investments in various ways.
WASHINGTON, Feb. 20, 2025 — The nation’s major wireless carriers are increasingly investing in fiber infrastructure, recognizing the economic and technical advantages of converging mobile and broadband networks, industry experts said at a Broadband Breakfast Live Online event Wednesday.
All three national wireless carriers - AT&T, Verizon, and T-Mobile - are expanding their fiber investments in various ways. AT&T is leading the charge with its goal to reach 50 million fiber passings, while Verizon has expanded its fiber footprint through its recent acquisition of Frontier. T-Mobile, meanwhile, has made investments in fiber providers Metronet and Lumos.
One key driver of convergence, according to Jonathan Chaplin, lead analyst at New Street Research, is the increasing difficulty of obtaining new wireless spectrum. "We’re getting to the end of an era where the FCC can find more spectrum to release every five or six years," he said. "The alternate way to increase capacity on their networks is to densify it. If you own the underlying infrastructure, the fiber, then densification is quick, easy and relatively cheap.”
Jonathan Chaplin
He also emphasized that broadband assets are currently undervalued in the market, while wireless assets remain highly priced. “Using wireless cash flow to buy broadband assets might just be a very good investment decision right now,” he added.
Carla Shaffer, vice president of wireless at Wesco, emphasized that modern networks require both technologies. "The best wireless network is connected by a strong fiber backbone and infrastructure with power," she said. "You need fiber, you need power."
The integration of fiber and wireless technologies has become increasingly critical for disaster recovery, Shaffer added. "We've been hit by catastrophic storms all over the country, not only in the hurricane zones but also these fires - they destroy everything. What's the fastest way to get a system back up and running? It's going to be via wireless technology."
However, Chaplin expressed skepticism whether bundling services would retain customers or drive up market shares as carriers often cite.
"If you look at the data across multiple markets in Europe where there's been convergence...If you look at market share of subscribers, EBITDA, free cash flow, returns on invested capital,” he said. “There is no discernible lasting benefit."
Spectrum scarcity and policy uncertainty
The discussion also touched on the ongoing battle over spectrum allocation, a critical issue as wireless carriers seek to expand capacity. While the Federal Communications Commission is considering options for releasing new spectrum, opposition from federal agencies, satellite operators, and spectrum-sharing advocates could limit availability.
"There’s a real possibility the carriers get none of it," Chaplin warned. "The demand for spectrum is growing at more than 10% a year.”
Chaplin also highlighted Dish Network’s spectrum holding as a potential acquisition target for established carriers, calling its 140 MHz of nationwide spectrum “the best of all possible spectrum available to carriers.” If they don’t make it as a business, “that’s the first block of spectrum that probably gets folded into the networks of AT&T, Verizon, or T-Mobile," he said.
The future of fixed wireless access
Regarding fixed wireless access, Shaffer emphasized that its effectiveness varies significantly by market. "If you look at a market that has become oversaturated, take Southern Florida for example... cellular connection is challenged at best," she said. "Go out to another rural market where you don't have a tremendous amount of density from a user perspective on the network, it's a fantastic option."
She also pointed to the role of FWA in bridging the digital divide while fiber networks continue to expand. “We have to give it to them and if we can’t get them the fiber in 10 years, then we’ve got to address the fixed wireless access,” she said.
What’s next for fiber-wireless convergence?
Looking ahead, Chaplin predicted further market consolidation, with T-Mobile potentially making a major move into fiber. "The only assets out there that would really move the needle for them would be Comcast or Charter," he said. "That’s a transaction with a real possibility over the next four years."
Shaffer, meanwhile, emphasized the importance of long-term planning in network deployment. "It's not just a one-two year plan, it's five, 10 years. Making those investments and those right decisions today is critical - they don't want to change down the line, and they don't want to miss out and have to pivot,” she concluded.
Panelists
- Carla Shaffer, Vice President, Wireless, Wesco
- Jonathan Chaplin, Lead Analyst, New Street Research
- Drew Clark (moderator), CEO and Publisher, Broadband Breakfast
Carla Shaffer began her career during the era of 1G, and has driven solutions into 2G, 3G, 4G, and now the emerging world of 5G. She currently serves as the Global Vice President of Wireless at Wesco, where she leads a team of experts who support the development and distribution of all wireless services within the enterprise and construction channels.
Jonathan Chaplin leads the US Communications Services research team. Prior to joining NSR he led the Telecom, Cable & Satellite research teams at Credit Suisse and JPMorgan where he was recognized as a top ranked analyst and stock picker by Institutional Investor, the Wall Street Journal and Forbes. When he isn’t analyzing the telecom industry, Jonathan is often disconnected from all networks, in remote parts of the world, climbing mountains.
Breakfast Media LLC CEO Drew Clark has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing tool to collect and verify broadband data left unpublished by the Federal Communications Commission. As CEO and Publisher, Clark presides over the leading media community advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.
