Out of space plans for 2026 in AT&T's annual report for 2025

You're probably working for a company that was ready with the 2025 annual report on January 5 and on January 6, you were likely presented with the 2026 plans. But AT&T does things a bit differently and it took the company a full three months to release its 2025 annual report.

Big numbers

According to AT&T Chairman and CEO John Stankey, the telecom sector is undergoing a "remarkable transformation" because of the sheer demand for AI (and it's only growing). Overall, AT&T invested heavily in fiber and 5G last year. But there's more to come in 2026.

AT&T's fiber has been brought to more places and the company reports the best consumer broadband subscriber growth in a decade. 2025 was the eighth year in a row with more than 1 million consumer fiber net adds.

In terms of wireless subscribers, Ma Bell delivered over 1.5 million postpaid phone net adds in 2025 (that's the fifth consecutive year to do so).

Satellite connectivity incoming

The goal is for AT&T to launch beta satellite connectivity in 2026 (via its AST SpaceMobile partnership). Both consumers and FirstNet public safety users should be able to take advantage of this space-based coverage.

We told you about this project at the very end of 2025. Back then, it was claimed that AT&T would kick off the satellite connectivity beta program in the first six months of 2026. In the 2025 annual report, there isn't a time window for the satellite service launch.

But I don't expect to be too far ahead in time.

Expanding further

Per the report, AT&T plans to expand its fiber footprint from 32 million to 40+ million locations by the end of 2026. There's a long-term target attached and it's one of 60+ million by 2030. The fiber base is already exceeding 12 million, indicating a long runway for high-margin broadband growth.

Those who pay for both fiber and wireless by AT&T (converged customers) are more valuable to the company. These rarely leave the company for rivals and bring more revenue to the company.

Speaking of money, AT&T achieved $1 billion in cost savings in 2025 and is targeting $4 billion annually by 2028, primarily through AI adoption, digital self-service and operating leverage. To me, that sounds like more layoffs in the months ahead.

The future is AI, too

The more direct-to-cell satellite services are out there, the better, right? That's what pushes innovation and competitive pricing across the industry (in theory, at least).

I'm sure that once AT&T's satellite service goes into beta, T-Mobile's T-Satellite will pull a new trick out of its hat.