The Fiber Frontier: AT&T and PRIME FiBER’s Strategic Push into Arizona’s Open-Access Landscape

In late May 2025, at&t and PRIME FiBER announced a pivotal expansion of their wholesale fiber partnership into Arizona, marking a critical step in their mission to democratize high-speed internet access. The move targets two key markets—Sun City (Maricopa County) and Peoria—building on their earlier collaboration in Florida. This partnership is far from a routine infrastructure deal; it reflects a broader industry shift toward open-access models, strategic capital efficiency, and the urgent demand for broadband equity.

The Strategic Play: Why Open-Access Wins

AT&T’s decision to partner with PRIME FiBER, a commercial open-access fiber infrastructure firm backed by InLight Capital, is a masterstroke of strategic resource allocation. Instead of deploying capital-intensive organic builds, AT&T leverages PRIME’s pre-existing network to rapidly expand its fiber footprint. This approach aligns with AT&T’s goal of surpassing 30 million fiber-passed locations by 2025 and reaching 50 million+ by 2029, as outlined in its 2024 Analyst & Investor Day presentation.

The open-access model allows AT&T to avoid the risks of overbuilding in saturated markets while accelerating coverage in underserved regions. PRIME FiBER, meanwhile, benefits from AT&T’s scale and reputation, securing long-term revenue streams from a telecom giant. This synergy is exemplified by their Florida partnership, which served as a blueprint for Arizona’s rollout.

The Financial Engine: InLight Capital and AT&T’s Capital Discipline

PRIME FiBER’s expansion into Arizona is underpinned by its financial backbone: InLight Capital, a private equity firm with a permanent capital base focused on infrastructure investments. This funding source ensures PRIME can deploy fiber networks without the pressure of short-term profit demands, a critical advantage in a sector where returns materialize over decades.

AT&T, for its part, funds its fiber ambitions through a disciplined $22 billion annual capital budget (2025–2027), prioritizing network modernization and partnerships over speculative projects. A key component of this strategy is leveraging open-access providers like PRIME to stretch its capital further. By mid-2025, the sale of its 70% stake in DIRECTV—expected to close soon—will provide additional liquidity, reinforcing AT&T’s ability to fund shareholder returns ($40 billion+ over three years) while advancing fiber goals.

The Geographic Edge: Arizona’s Untapped Potential

Sun City and Peoria represent prime targets for this expansion. Both cities are growing hubs for tech-driven industries and remote work, yet they lag behind coastal markets in broadband infrastructure. The partnership’s focus on these areas aligns with federal programs like the Broadband Equity, Access, and Deployment (BEAD) initiative, which prioritizes underserved regions.

PRIME FiBER’s role as the wholesale division of NOVOS FiBER—a retail fiber-to-the-home provider—also creates a dual-play opportunity. While PRIME handles infrastructure, NOVOS can offer direct services, creating a vertically integrated pipeline to capture consumer demand.

Risks and Considerations

The model isn’t without challenges. Open-access partnerships rely on regulatory stability, and AT&T’s broader fiber joint venture with BlackRock (Gigapower) has faced labor and contractor disputes. However, the PRIME-FiBER partnership sidesteps these issues by focusing on wholesale agreements rather than shared ownership.

Another risk is competition from regional providers like Google Fiber and Lumen Technologies, which are also expanding aggressively. Yet AT&T’s brand recognition and PRIME’s agility in deploying infrastructure may give them an edge in scaling quickly.

Conclusion: A Recipe for Market Dominance

The Arizona expansion underscores a compelling investment thesis: open-access partnerships are the future of fiber deployment. PRIME FiBER’s InLight-backed model and AT&T’s capital discipline create a scalable, low-risk pathway to meet surging demand for broadband.

With 30 million fiber-passed locations already in sight and a 50 million target by 2029, AT&T’s stock (T) has shown resilience amid industry volatility, rising steadily over the past year despite macroeconomic headwinds. Meanwhile, PRIME FiBER’s role as a critical infrastructure partner positions it to benefit from federal BEAD funding and rising demand for wholesale fiber services.

For investors, this partnership isn’t just about Arizona—it’s about a template for dominance in the $800 billion global fiber market. As the open-access model gains traction, AT&T and PRIME FiBER are poised to redefine connectivity, one fiber strand at a time.

In summary, this collaboration blends strategic foresight, financial pragmatism, and geographic opportunity. For investors tracking the telecom sector, watching these companies execute their vision could be a masterclass in turning infrastructure into profit.