Summary
AT&T has announced plans to acquire Lumen Technologies’ fibre business for a hefty sum of $5.75 billion. This deal will enhance AT&T’s high-speed internet infrastructure, potentially reaching millions of new residential customers across 11 states in the US. The focus is on Lumen’s existing fibre assets, which currently serve around 1 million customers through 4 million fibre-ready locations. As part of the initiative, AT&T aims to transition these customers to its own fibre services.
With the acquisition, AT&T expects to double its fibre reach by 2030, significantly increasing its presence in major cities such as Denver, Seattle, and Las Vegas, where Lumen already has established infrastructure. Additionally, access to Lumen’s construction capabilities will enable AT&T to expedite fibre internet rollout in new areas.
The deal includes last-mile fibre connections and essential network equipment, which will be placed under a new subsidiary called NetworkCo. Post-acquisition, Lumen will continue to provide operational support for up to two years during the transition.
The acquisition is subject to regulatory approval and is expected to close in the first half of 2026. Following the deal, AT&T plans to seek an equity partner for NetworkCo within a year, allowing it to manage costs while expanding its fibre network.
Key Points
- AT&T is acquiring Lumen’s fibre business for $5.75 billion, expanding high-speed internet to millions of homes.
- The deal involves Lumen’s “Mass Markets” fibre assets serving approximately 1 million customers.
- AT&T aims to double its fibre network reach by 2030 following the acquisition.
- Infrastructure in key cities such as Denver and Seattle will be leveraged for expanded services.
- The acquisition includes last-mile fibre connections and vital network equipment.
- Lumen will assist AT&T during the transition under temporary support agreements.
- The deal awaits approval from the US Department of Justice and is projected to close in early 2026.
Why should I read this?
If you’re interested in the shifting landscape of internet service providers, this piece is a must-read! AT&T’s move to amplify its fibre coverage could significantly reshape the market, potentially improving access and options for consumers. Plus, tracking this deal could give you a heads-up on future tech and service improvements in your area. We’ve boiled down the key details so you won’t miss out!
