AT&T is eyeing a $5.5 billion deal that could change your internet experience
For those who regularly handle large downloads and uploads, fiber is the way to go – and AT&T is well aware of that. Recently, the company tested a cutting-edge technology capable of delivering speeds four times faster than its current top offering. Now, it looks like AT&T is doubling down on its fiber expansion.
According to a new report (subscription required) AT&T is in exclusive talks to acquire Lumen Technologies' consumer fiber business, a deal that could be worth over $5.5 billion. However, since nothing is set in stone, the terms could still change, or the negotiations might fall through entirely.
Lumen's decision to potentially sell off its fiber division – which delivers high-speed internet to residential customers – comes as the company shifts focus toward AI-driven growth. At the same time, it is struggling with the rapid decline of its older services. Lumen's fiber-optic network spans over 1,700 wire centers, though consumer fiber is currently available in only about 400 of them.
Stansbury also pointed out that bundling fiber-to-the-home with wireless services gives major providers an edge, reducing customer turnover and strengthening pricing power. He further noted that Lumen's fiber business had attracted significant interest from potential buyers.
And AT&T has been ramping up its high-speed fiber investments to accelerate subscriber and revenue growth. The telecom giant recently projected its first-quarter adjusted profit in line with analyst expectations.
Other US carriers are also expanding their fiber footprint. Last year, T-Mobile made a similar move by acquiring fiber internet provider Metronet through a joint venture with investment firm KKR, further strengthening its broadband offerings.
Lumen's decision to potentially sell off its fiber division – which delivers high-speed internet to residential customers – comes as the company shifts focus toward AI-driven growth. At the same time, it is struggling with the rapid decline of its older services. Lumen's fiber-optic network spans over 1,700 wire centers, though consumer fiber is currently available in only about 400 of them.
Earlier this month, Lumen Chief Financial Officer Chris Stansbury addressed during a conference the possibility of selling off the company's fiber-to-the-home business. He acknowledged that the market was heading toward consolidation and that Lumen wouldn't be in a position to lead that shift.
Ultimately, that consumer asset was going to sit in the space where the market was going to consolidate and at that point of consolidation, we were not going to be a consolidator.
– Chris Stansbury, Lumen CFO, March 2025
And AT&T has been ramping up its high-speed fiber investments to accelerate subscriber and revenue growth. The telecom giant recently projected its first-quarter adjusted profit in line with analyst expectations.
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