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AT&T Explores Significant Fiber Acquisition to Boost Internet Services
For users who frequently engage in extensive data transfers, fiber-optic internet is the optimal choice, and AT&T recognizes this trend. The telecom company has recently been exploring innovative technology that could potentially offer speeds four times faster than its existing highest-tier service. In light of this, AT&T is intensifying its efforts to expand its fiber network.
As reported by Bloomberg, AT&T is currently in exclusive negotiations to acquire Lumen Technologies’ consumer fiber division for a deal that could surpass $5.5 billion. However, with negotiations still in progress, the terms remain subject to change, and it’s possible that talks could ultimately collapse.
Lumen’s potential decision to divest its fiber segment, which provides high-speed internet to households, aligns with the company’s transition towards AI-enhanced growth strategies. Simultaneously, Lumen is facing significant challenges due to the rapid decline of some of its legacy services. While its fiber-optic infrastructure covers over 1,700 wire centers, consumer fiber services are only available in approximately 400 locations currently.
In a recent conference, Lumen’s Chief Financial Officer, Chris Stansbury, discussed the likelihood of selling the fiber-to-the-home business. He acknowledged the industry’s trend toward consolidation and indicated that Lumen may not have the capability to spearhead this movement.
“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
Stansbury emphasized that combining fiber-to-the-home services with wireless offerings provides major players in the industry with a competitive advantage, leading to reduced customer churn and enhanced pricing strategies. He also mentioned that Lumen’s fiber operations had drawn considerable interest from prospective buyers.
AT&T has been actively increasing its investments in high-speed fiber to accelerate growth in both subscriber numbers and revenue. Recently, the company projected its adjusted profits for the first quarter, aligning with what analysts anticipated.
Other telecommunications companies in the U.S. are also working to expand their fiber networks. For instance, T-Mobile pursued a similar strategy last year by acquiring fiber internet provider Metronet through a joint venture with investment firm KKR, thereby strengthening its broadband capabilities.
Source
www.phonearena.com