Fiber Gold Rush: PRIME FiBER's Arizona Play Is a Home Run for Investors

The digital divide isn't just a buzzword—it's a $800 billion global opportunity, and PRIME FiBER and AT&T are sprinting to claim it. This Arizona expansion isn't just about laying cables; it's about building the backbone of a new economy. Let me break down why this partnership is a strategic masterstroke and why investors should take note.

The Open-Access Model: Capital Efficiency on Steroids

PRIME FiBER's deal with AT&T is a textbook example of capital-light, high-impact investing. Instead of AT&T spending billions to build fiber networks from scratch, it's piggybacking on PRIME's infrastructure. This model lets AT&T focus on its strengths—marketing, customer service, and bundling services like its wireless plans—while PRIME handles the costly, slow work of digging trenches and stringing cables.

The numbers speak volumes. In Q1 2025, AT&T added 261,000 new fiber customers, pushing its Consumer Wireline revenue up 5.1% to $3.5 billion. That's not a blip—it's a trend. With a $22 billion annual capital budget (2025–2027), AT&T is allocating cash like a general in a siege warfare campaign: prioritizing growth where it can scale fastest.

The Arizona Play: Closing the Divide, One Gigabit at a Time

Arizona isn't just a warm-weather retreat—it's a frontier market ripe for fiber. Sun City and Peoria aren't Silicon Valley, but they're home to tech-driven industries and growing families demanding 500 Mbps+ speeds (the new baseline, per the Broadband Bytes report). PRIME's partnership here isn't charity; it's strategic land grab.

By leveraging InLight Capital's permanent capital structure, PRIME can build out infrastructure over decades without Wall Street's quarterly earnings pressure. That's a huge edge. Imagine if Tesla could build Gigafactories without worrying about hitting EPS estimates? That's the kind of freedom InLight provides.

Why Investors Should Salivate

1. Regulatory Tailwinds: The BEAD program and Biden's broadband equity push are pouring fuel on this fire. PRIME's open-access model aligns perfectly with federal goals to fund middle-mile infrastructure.
2. Multi-Gig Demand: Remote work, smart homes, and 4K streaming aren't trends—they're lifestyle necessities. By 2030, 60 million U.S. households could need fiber. PRIME is future-proofing itself.
3. Compounding Value: Every mile of fiber laid today is an asset that can serve dozens of service providers tomorrow. Think of it as real estate: The infrastructure appreciates as demand grows.

Risks? Sure—But the Upside Swamps Them

Competition from Google Fiber and Lumen Technologies is real, but AT&T's brand power and PRIME's deployment speed create a moat. Plus, InLight's deep pockets mean PRIME can outlast rivals in a race to cover underserved areas.

The bigger risk? Regulatory uncertainty. If Congress scraps BEAD or tightens net neutrality rules, projects could stall. But for now, the wind is at PRIME's back.

Buy, Hold, and Let It Grow

This isn't a trading play—it's a decade-long bet. Here's how to play it:

• AT&T (T): The stock is undervalued relative to its fiber growth. With its dividend yield at 5.2% and fiber ARPU rising, it's a buy-and-hold staple.
• Infrastructure Funds: Look to ETFs like the Global X U.S. Infrastructure Development ETF (PAVE), which includes players in the fiber ecosystem.
• InLight Capital's Portfolio: While not publicly traded, its support of PRIME hints at other hidden gems in its stable.

Final Call

PRIME FiBER's Arizona expansion isn't just about wires in the ground—it's about democratizing the future. In a world where speed equals survival, this partnership is a gold standard for how to bridge divides while making money. Investors who buy in now? They're buying seats on the next tech train. Don't miss the departure.