AT&T outlines $250 billion US investment plan to boost infrastructure in AI age

March 10 (Reuters) - AT&T will spend more than $250 billion over five years in the U.S. to expand its network infrastructure and will hire thousands of technicians this year, it said on Tuesday, as telcos ramp up investments to support surging data demand.

Rapid adoption of artificial intelligence, cloud computing and connected devices has prompted telecom operators to invest heavily in fiber and 5G networks as they also seek to fend off intensifying competition from cable broadband providers.

AT&T T.N, which has about 110,000 employees in the U.S., said the new hires will help build and maintain its infrastructure.

The outlay includes capital expenditure and other spending, the company said.

The spending will focus on expanding its fiber and wireless networks, including accelerating deployment of fiber broadband, 5G home internet and satellite connectivity to extend coverage across urban, suburban and rural areas.

"It has to spend hard, but it also has to spend smart, .... and its partnership with AST SpaceMobile is something investors will be keeping a close eye on," said Danni Hewson, head of Financial Analysis at AJ Bell.

AT&T invested more than $145 billion in its wireless and wireline networks between 2019 and 2023 as telecom operators raced to expand high-speed connectivity.

The spending push comes alongside federal broadband initiatives created under the 2021 infrastructure law, including the $42.5 billion Broadband Equity, Access, and Deployment Program.

However, the rollout of funding has faced delays due to a combination of implementation challenges and policy changes under the Trump administration.

Fiber broadband has become a key battleground between carriers and cable providers as they jostle to cater to demand from home internet customers.

AT&T is also working with satellite partner AST SpaceMobile ASTS.O to expand connectivity to remote regions where traditional network infrastructure is difficult to deploy.

The company said it would continue spending on the FirstNet network built for first responders and bolster investment in network security and artificial intelligence-driven threat detection.