AT&T to Acquire Lumen Fiber Assets in $5.75B Deal to Broaden U.S. Coverage

AT&T has announced plans to acquire substantially all of Lumen’s Mass Markets fiber business in a $5.75 billion all-cash transaction, according to CRN. The deal includes more than 4 million fiber locations and approximately 1 million customer relationships across 11 U.S. states. The move aligns with AT&T’s broader goal to expand fiber access nationwide, particularly in urban areas where demand for high-speed internet continues to grow. The acquisition is expected to close in the first half of 2026, pending regulatory approvals.

By integrating Lumen’s fiber assets, AT&T aims to accelerate its fiber network expansion beyond its traditional wireline footprint. The company now expects to reach roughly 60 million total fiber locations by the end of 2030. The acquisition also grants AT&T access to Lumen’s construction capabilities, allowing for a more efficient fiber buildout in new markets. This expanded footprint will include key metro areas such as Seattle, Phoenix, and Orlando, enabling AT&T to deepen its reach in high-growth regions.

The acquired assets will be held in a new AT&T-owned subsidiary, NetworkCo, which will also take on a number of Lumen employees. After closing, AT&T plans to bring on an equity partner to co-invest in NetworkCo. The unit will serve as a wholesale platform, with AT&T as the anchor tenant. During a transitional period of up to two years post-close, Lumen will continue to provide operational and IT services to ensure a smooth handover for customers and support teams.

AT&T emphasized that the acquisition supports its long-term strategy to lead in both fiber and wireless services. The transaction is expected to have minimal short-term impact on the company’s financials, with long-term accretive benefits. AT&T also reiterated its commitment to capital return plans, including repurchasing up to $10 billion in shares through 2026. By combining fiber and 5G services, AT&T aims to strengthen customer loyalty and increase the value of its converged connectivity offerings.