AT&T Finalizes $5.75 Billion Acquisition of Lumen's Consumer Fiber Business
February 2, 2026
In a major consolidation move within the US telecommunications sector, AT&T has completed its $5.75 billion acquisition of Lumen Technologies' mass-market fiber business. The deal, first announced in May 2025, significantly accelerates AT&T's aggressive fiber-to-the-premises (FTTP) expansion plans amid intensifying competition to build next-generation broadband infrastructure. The transaction closed shortly after AT&T's CEO confirmed the companies were in the final stages of the process. As a result, AT&T gains approximately 4 million additional fiber-ready customer locations across 11 states, immediately adding 1 million new fiber subscribers to its base. This acquisition is a cornerstone of AT&T's strategy to reach 40 million fiber locations by the end of 2026 and 60 million by 2030. The company ended 2025 with its fiber network available to 32 million locations and aims to ramp up its annual construction pace from 3 million new locations in 2025 to a run rate of 4 million by year-end 2026. AT&T CEO John Stankey framed the deal as a critical investment in national infrastructure, stating, “AT&T Fiber will be available to millions more people as we expand the service in 32 states. This investment will create good-paying jobs, boost US connectivity, and bring the benefits of high-speed connections to more communities across the country.” Company executives noted that Lumen's existing fiber network has a customer penetration rate of only about 25 percent, presenting a significant growth opportunity compared to AT&T's own 40 percent penetration rate. For Lumen, the divestiture marks a strategic pivot. CEO Kate Johnson described it as "a pivotal moment," enabling the company to focus resources on enterprise and public sector digital infrastructure, particularly for AI-driven opportunities. Lumen plans to use approximately $4.8 billion of the proceeds, along with cash, to retire all its super-priority debt, reducing annual interest expense by around $300 million and lowering total debt to under $13 billion. "We are doubling down on where we are strongest," Johnson said, outlining a strategy to modernize its network and build a connected ecosystem for business customers. The acquisition intensifies the fiber arms race among major US carriers. AT&T now must integrate a major new asset while competing with rivals like Verizon and T-Mobile, both of which have also pursued fiber acquisitions and build-outs. AT&T's expansion efforts are further supported by its 'Gigapower' joint venture with investment firm BlackRock, which builds fiber networks to be shared with other providers.
Source: datacenterdynamics
