AT&T has agreed to acquire substantially all of Lumen’s Mass Markets fiber internet business for $5.75 billion in an all-cash deal expected to close in the first half of 2026. The transaction includes approximately 1 million fiber subscribers across 4 million serviceable locations in 11 U.S. states, and it positions AT&T to double its current fiber footprint to 60 million locations by 2030. This move expands AT&T’s reach beyond its traditional wireline service area and accelerates fiber deployment using Lumen’s in-place construction capabilities.
The deal enables AT&T to absorb key last-mile fiber assets, network elements in central offices, and customer relationships into a new wholly owned subsidiary, NetworkCo. AT&T plans to bring in an equity partner for NetworkCo post-close, allowing the platform to operate as a wholesale, open-access network with AT&T as anchor tenant. As part of the transition, some Lumen employees will be offered roles within AT&T or NetworkCo, while Lumen retains its enterprise fiber and copper-based mass markets business.
The acquisition boosts AT&T’s presence in major metros including Seattle, Denver, Phoenix, Las Vegas, and Orlando. Customers will transition to AT&T Fiber and benefit from its multi-gig service offerings, the AT&T Guarantee, and integrated 5G/fiber bundle options. AT&T emphasized that the deal aligns with its existing 2025 financial guidance and $10 billion share repurchase program. The transaction is subject to regulatory approvals, including review by the U.S. Department of Justice.
- AT&T to acquire Lumen’s fiber business serving 1M customers across 4M locations
- $5.75B all-cash transaction to close in 1H 2026, subject to approvals
- Fiber assets to be held under NetworkCo, with partial divestment to equity partner planned
- Expands AT&T Fiber to new markets and doubles target footprint to 60M locations by 2030
- Lumen retains enterprise and copper-based businesses; provides transitional support to AT&T
“We’re leading the race to connect more Americans with fiber,” said AT&T CEO John Stankey. “This deal with Lumen represents a significant investment in U.S. connectivity infrastructure that will create jobs and spur economic activity in numerous regions.”
