AT&T has announced its plans to purchase Lumen’s Mass Markets Fiber Business for $5.75 billion in an all-cash transaction, signaling a major move in its fiber and 5G strategy. This acquisition aims to extend AT&T’s fiber reach beyond its existing footprint, targeting over 4 million new customer locations.
Currently, AT&T has approximately 30 million fiber locations. With the Lumen acquisition, it plans to double this figure by 2030. Targeted metro areas for expansion include Denver, Las Vegas, and Seattle, among others. Looking towards 2026, the completion of this acquisition hinges upon regulatory approval.
According to John Stankey, the chairman and CEO of AT&T, this move is a significant investment in U.S. connectivity infrastructure. It will create jobs and boost economic activity across 11 states. Once completed, AT&T will reach a total of 32 states.
Moreover, AT&T is set to acquire Lumen’s last-mile mass market fiber assets along with central office network elements. The acquisition includes nearly 1 million non-enterprise fiber customers of Lumen. These customers will gradually transition to become AT&T Fiber customers. However, the deal excludes Lumen’s enterprise fiber customers and those using copper infrastructure. This aligns with AT&T’s initiative to phase out its own copper network.
AT&T’s strategy also includes increasing customer penetration rates in Lumen’s areas in line with existing markets. Currently, more than 40% of AT&T Fiber households opt for the company’s wireless services too. Stankey highlighted during the recent quarterly call that customers who use both fiber and wireless services have a higher lifetime value exceeding 15%.
This purchase aligns with the industry trend where fiber deployment is crucial for economic growth. Beyond acquiring Lumen’s assets, AT&T intends to partially divest these in a subsidiary while keeping costs in check through external investments.
