The operation will allow AT&T to reach 60 million homes with fiber before 2030 and expand into 11 key states.
AT&T has announced the acquisition of nearly all of Lumen Technologies’ fiber business for residential markets for $5.75 billion in cash, according to a statement from the company. The transaction, subject to price adjustments and regulatory approvals, is expected to close in the first half of 2026 and is part of the carrier’s ambitious strategy to lead the U.S. fiber broadband market.
The transaction will provide AT&T with a base of approximately 1 million fiber customers and a network that reaches over 4 million residential locations in 11 states, including major metropolitan areas such as Denver, Las Vegas, Orlando, Phoenix, Salt Lake City, Portland, and Seattle. The carrier’s goal is to double its current fiber footprint and reach around 60 million connected homes by the end of 2030.
Strategic Consolidation and Growth
“Fiber is the best connectivity technology available today, and we are determined to bring it to more Americans,” said John Stankey, president and CEO of AT&T. “This deal will not only expand our presence but also create jobs and promote economic growth in multiple regions of the country.”
After the acquisition, current Lumen customers will become part of the AT&T Fiber ecosystem, which offers simple rates, multigigabit speeds, optimal home coverage, and an enhanced experience with the AT&T Guarantee.
Creation of a Subsidiary and Search for an Investor Partner
AT&T will structure the acquired assets under a new subsidiary provisionally called NetworkCo, and plans to sell a minority stake in this entity to an investor partner within 6 to 12 months after closing the deal with Lumen. NetworkCo will operate as an open-access commercial platform providing wholesale fiber services to AT&T, which will act as the primary tenant.
The company expects to deconsolidate NetworkCo from its financial statements after the entry of the partner, allowing it to accelerate network deployment without negatively impacting its balance sheet. In the long term, AT&T anticipates that this structure will yield returns comparable to those from its current fiber investments.
Financial Impact and Commitment to Shareholder Returns
In the short term, AT&T estimates that the impact of the transaction will be neutral in terms of adjusted EBITDA, adjusted earnings per share, and free cash flow, although it is expected to be accretive in the long term. Additionally, the company reaffirms its intention to maintain its net leverage target (net debt/adjusted EBITDA) around 2.5x following the transaction.
AT&T has also reiterated its commitment to its $10 billion stock repurchase program, from which it expects to complete at least $3 billion before the end of 2025.
Deal Details
The acquired business includes Lumen’s last-mile fiber infrastructure for residential customers, the necessary network elements at central offices to provide fiber services, and nearly all of Lumen’s current fiber customers. The deal does not include Lumen’s fiber business customers or those with copper-based connections.
During a transition period of approximately two years following the close, Lumen will provide AT&T with operational services, technical support, IT, and customer management, and AT&T will have access to key infrastructures such as central offices, poles, and conduits.
With this move, AT&T reinforces its leadership as the fastest-growing fiber operator in the U.S., laying the groundwork for aggressive expansion in an increasingly competitive market, with the convergence of fiber and 5G as a key to loyalty and profitability.