AT&T expects to miss fiber target due to supply chain issues

AT&T CFO Pascal Desroches said supply chain issues would likely prevent the operator from reaching its goal of delivering fiber to 3 million new locations in 2021. While up through the second quarter of 2021 AT&T hadn’t really experienced any impact from global supply chain disruptions, Desroches stated that “since the start of the third quarter [AT&T] is seeing dislocation across the board, including in fiber supply.” The CFO estimated that as a result, the company will not reach its 3 million target set earlier this year and instead will get to approximately 2.5 million. AT&T doesn’t expect the shortages to impact it over the long term and the company remains focused on fiber despite the hurdle. As its buildout continues, Desroches said AT&T is aiming to achieve at least 40 percent penetration on homes passed and will have an opportunity to exceed that figure in certain markets. He also noted that its fiber builds will also boost its ability to reach nearby businesses, helping increase returns in its enterprise segment.