Key Points
- AT&T is acquiring Lumen’s consumer fiber business for $5.75 billion in cash. The deal expands AT&T’s fiber network to more than 60 million locations by 2030.
- Lumen’s network spans 4 million locations across 11 states with 1 million customers. AT&T will create a new subsidiary and bring in an equity partner to co-invest.
- The acquisition follows a similar 2022 partnership between AT&T and BlackRock.
- Telecom consolidation is accelerating, with major deals involving Verizon, Frontier, Charter, and Cox.
AT&T Inc. has agreed to purchase Lumen Technologies Inc.’s consumer fiber division for $5.75 billion in cash, marking a strategic expansion of its high-speed broadband network. The deal, announced Wednesday, will boost AT&T’s presence in urban areas such as Denver and Las Vegas and is expected to close in the first half of 2025, pending regulatory approval.
This acquisition is a significant step toward AT&T’s long-term goal of expanding its fiber-optic infrastructure to reach 60 million locations by 2030—a figure nearly doubling its current footprint. The move is part of a broader industry trend in which telecom giants are racing to upgrade and expand fiber networks across the U.S.
Lumen, serving residential and enterprise customers, had been shifting its focus away from consumer services. It currently serves 1 million residential fiber customers and covers over 4 million homes and businesses across 11 U.S. states. AT&T will form a new subsidiary to manage the acquired assets and plans to bring in an equity partner within 6 to 12 months of the transaction’s completion to co-invest and scale the business further.
This structure mirrors AT&T’s 2022 partnership with BlackRock, which resulted in the formation of Gigapower LLC. Gigapower LLC aims to accelerate fiber buildouts outside of AT&T’s traditional landline service areas.
Lumen’s stock surged 17% in premarket trading, reflecting positive investor sentiment, while AT&T’s shares remained steady. The deal highlights the intensifying competition in the telecom space as companies position themselves for the next wave of broadband growth.
In parallel, major telecom consolidations continue to reshape the industry. The FCC recently approved Verizon’s acquisition of Frontier Communications, and Charter Communications announced a $34.5 billion merger with Cox Communications, making it the largest broadband provider in the U.S.
