AT&T Completes Acquisition of Lumen’s Consumer Fiber Business in $5.75B Deal
Acquisition lands AT&T with an additional 1 million fiber subscribers and 4 million fiber locations in 8 states
WASHINGTON, Feb. 2, 2026 – AT&T closed its acquisition of Lumen’s mass market fiber business in a $5.75 billion all-cash deal Monday.
The deal has expanded AT&T’s fiber offerings in Washington, Oregon, Idaho, Utah, Colorado Nebraska and Iowa, landing AT&T with one million additional fiber subscribers and four million additional fiber locations, according to a press release.
“This investment will create good-paying jobs, boost U.S. connectivity and bring the benefits of high-speed connections to more communities across the country.”John Stankey, chairman and CEO of AT&T said in a statement.
At their Q4 earnings call on Wednesday, Jan. 28, Stankey said the company was increasing its fiber deployment pace. Between Monday’s acquisition and the planned deployment of 4 million additional locations in 2026, the carrier is aiming for 40 million fiber passings by the end of the year, two-thirds of the way to its goal of 60 million passings by the end of 2030.
Stankey also said he expected to find an equity partner to co-invest in the Lumen assets this year.
This acquisition was part of AT&T’s convergence strategy, which involves bundling fixed and mobile broadband in a bid to reduce subscriber churn..
This reflects an internal belief that bundling leads to customer loyalty as noted in the press release announcing the purchase.
“Customers with both AT&T Fiber and the Company’s wireless services are more likely to recommend AT&T, remain customers longer and provide the best returns – giving AT&T a position unlike anyone else in the industry,” according to the press release.
A new ad promoting the home and mobile bundled offering has already started running, as AT&T attempts to promote this national strategy.
Verizon, which recently closed its $20 billion acquisition of Frontier, is also all in on convergence. T-Mobile executives have been more skeptical, but the carrier has entered into multiple fiber joint ventures.
“AT&T also acquired Lumen’s fiber build engine which should help accelerate fiber deployment,” New Street Research analyst David Barden wrote in an investor note. “Closing the Lumen transaction only raises the stakes in the convergence conversation.”
Member discussion