The largest US fixed line and wireless operator, AT&T Inc, says it is increasing the planned spend on its U-verse fibre-optic rollout even though it is also lowering its forecasts for end-2008 network coverage. The carrier says it now expects the fibre-to-the-home (FTTH) deployment to cost between USD4.5 billion and USD5 billion in 2007/08, up by USD500 million on previous estimates. At the same time, AT&T says it is now aiming for the network to be covering about 17 million homes by end-2008, down from its earlier target of 18 million. The company made a similar announcement in May this year, raising spending forecasts and pulling back on its coverage estimates. The bulk of its spend on U-verse will go towards deploying new networks in the southeast United States. The U-verse system offers high speed internet access alongside telephony and TV services, enabling AT&T to compete directly with the triple-play packages of the major cable operators.