Illustration: Shivendu Jauhari/iStock
Dallas-based communications giant AT&T has agreed to acquire substantially all of Denver-based Lumen’s Mass Markets fiber business for $5.75 billion. AT&T said the all-cash transaction will enable it to expand its investment in critical U.S. connectivity infrastructure, create new middle-class jobs, and accelerate high-speed fiber internet access to millions of Americans.
John Stankey
“We’re leading the race to connect more Americans with fiber, the best broadband connectivity technology available,” AT&T Chairman and CEO John Stankey said in a statement. “This deal with Lumen represents a significant investment in U.S. connectivity infrastructure that will create jobs and spur economic activity in numerous regions and major metro areas across 11 states. As we advance our fiber build, we’ll serve more communities with world-class connectivity and expect to roughly double where AT&T Fiber is available by the end of 2030.”
AT&T said that the Lumen Mass Markets fiber assets included in the deal total roughly 1 million fiber subscribers across more than 4 million fiber locations. The company said that over time, those subscribers will transition to be AT&T Fiber customers.
“We’re sharpening our focus on enterprise customers, and this transaction enhances our financial flexibility, enabling us to reimagine networking for enterprises in a multi-cloud, AI-first world,” Lumen CEO and President Kate Johnson said in a statement. “As part of this deal, we’re retaining the core infrastructure that allows us to continue innovating for enterprise customers, leap frogging traditional networking architectures to give customers the bandwidth, performance, and security they need. The fiber-to-the-home business being sold is tremendously valuable thanks to the incredible work by the team and will now have even greater opportunity to grow with AT&T’s scale, consumer-focus, and investment.”
Expanding the fiber footprint
AT&T said the deal will enable it to significantly expand access to AT&T Fiber in major metro areas such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle, among other locales.
The deal delivers several highlights, per AT&T:
- Significantly grows the number of AT&T Fiber customers within the acquired fiber footprint, using its extensive distribution, the strengths of AT&T Fiber, and the value of the AT&T Guarantee. Over time, AT&T expects to increase fiber customer penetration within the acquired footprint to levels more consistent with its current penetration of AT&T Fiber.
- Accelerates an efficient build engine for constructing fiber home internet connectivity outside of AT&T’s traditional wireline operating region. Via the deal, AT&T said it will gain access to Lumen’s substantial fiber construction capabilities within its incumbent local exchange carrier (ILEC) footprint and plans to accelerate the pace at which fiber is being built in these territories. AT&T said it now expects to reach roughly 60 million total fiber locations by the end of 2030—roughly doubling where AT&T Fiber is available today.
- Gives American consumers more choice when selecting broadband and wireless services the way they prefer—with fiber and 5G together.
More details on the deal, including NetworkCo. subsidiary
AT&T said the acquired portion of the Lumen Mass Markets business includes last-mile Mass Markets fiber assets and the associated network elements in central offices that enable fiber services, as well as substantially all of Lumen’s Mass Markets fiber customers.
That will position AT&T to deliver a consistent experience to AT&T Fiber customers within Lumen’s Mass Markets footprint over time, the company said.
AT&T will hold the acquired fiber network assets, including certain fiber network deployment capabilities, in a new, fully owned subsidiary called NetworkCo. It is expected that along with the fiber assets, certain employees will move, or receive offers to move, from Lumen to AT&T or NetworkCo as a part of this deal.
AT&T said that Lumen’s enterprise fiber customers and Mass Markets copper-based customers as well as the associated assets to support them are not part of this agreement.
The transaction is expected to close in the first half of 2026.
After closing the transaction with Lumen, AT&T plans to sell partial ownership of NetworkCo to an equity partner that will co-invest in the ongoing business. It said it expects to identify an equity partner and close a transaction within approximately six to 12 months of closing the transaction with Lumen.
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