AT&T is acquiring the fiber portion of Lumen Technologies' Mass Markets unit for approximately $5.75 billion, significantly expanding its fiber footprint as part of a convergence strategy combining home broadband and mobile services. This move comes as AT&T competes with cable rivals Charter and Comcast, who have found success with broadband/mobile bundles.The acquisition will boost AT&T's fiber target from 50 million to 60 million locations by 2030, representing a 25% increase. The deal includes 4.4 million existing locations from Lumen plus 5.6 million additional locations AT&T plans to build afterward. However, this will still cover only about 31% of US housing units by 2030.
Analysts view the deal favorably, with AT&T paying approximately $1,450 per fiber enablement—well below recent comparable transactions like Verizon-Frontier. The acquired assets are strategically located in eight major markets including Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and others.
AT&T will operate the network through a subsidiary called "NetworkCo" and plans to bring in an equity partner within 6-12 months after closing. The transaction is expected to close in the first half of 2026, with Lumen focusing on enterprise markets while AT&T pursues its fiber-mobile convergence strategy.
Analysts view the deal favorably, with AT&T paying approximately $1,450 per fiber enablement—well below recent comparable transactions like Verizon-Frontier. The acquired assets are strategically located in eight major markets including Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and others.
AT&T will operate the network through a subsidiary called "NetworkCo" and plans to bring in an equity partner within 6-12 months after closing. The transaction is expected to close in the first half of 2026, with Lumen focusing on enterprise markets while AT&T pursues its fiber-mobile convergence strategy.
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