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3mo ago

AT&T to Acquire Lumen’s Consumer Fiber Business for $5.75 Billion

The telecom giant will gain 1 million customers and expand its fiber network to over 4 million locations across 11 states, with the deal expected to close in 2026 pending regulatory approval.

Construction workers installing fiber cables in a west Mesa neighborhood for Google Fiber internet service.
Steve Smith, of CenturyLink, works on a residential fiber install at a home in Highlands neighborhood on December 23, 2019 in Denver, Colorado. CenturyLink's fiber network, along with the related company Quantum Fiber, are being purchased by AT&T for $5.75 billion. (Photo by RJ Sangosti/The Denver Post)
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An AT&T logo is pictured in Pasadena, California, U.S., January 24, 2018. REUTERS/Mario Anzuoni

Overview

  • AT&T will purchase Lumen Technologies' consumer fiber operations for $5.75 billion in cash, adding 1 million fiber customers and expanding access to over 4 million fiber-enabled locations.
  • The acquisition includes consumer fiber networks in 11 states, covering major metro areas like Denver, Las Vegas, Seattle, and Orlando.
  • Lumen plans to use $4.8 billion of the proceeds to reduce debt and cut annual interest expenses by over $300 million, while focusing on enterprise fiber and AI services.
  • AT&T will house the acquired assets in a new subsidiary, with plans to sell a minority stake and expand its fiber footprint to 60 million locations by 2030.
  • The deal excludes Lumen's enterprise fiber and legacy copper DSL lines, reflecting a strategic shift toward high-speed fiber and AI-ready networks.