Verizon, AT&T Scale Back Fiber Rollout for Fast Internet Amid Slowing Economy
- Phone companies trim spending plans for network expansion
- End of low interest rates, slumping demand lead to cutbacks
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Higher costs and a slowing economy are hobbling efforts to deliver lightning fast fiber-optic internet service across the US, leading AT&T Inc., Lumen Technologies Inc. and Verizon Communications Inc. to scale back their expansion plans.
Verizon expects to extend fiber past about 50,000 fewer homes this year than last, executives said in recent days. Lumen has hit the “stop button” to find a more profitable strategy, and even AT&T, which realigned itself around fiber and 5G wireless, has slashed the number of homes it plans to reach by 39% this year.