Lumen Sells Fiber Business to AT&T, Expands Internet Reach
The deal will have a significant impact on the telecommunications industry, with Lumen and AT&T poised to benefit from the growing demand for high-speed internet services. As the companies continue to invest in their fiber networks, customers can expect faster and more reliable internet connectivity, driving innovation and economic growth in the regions served.
Lumen has agreed to sell its consumer fiber business to AT&T for $5.75 billion, allowing the company to focus on its enterprise and AI initiatives. The deal will see AT&T acquire 95% of Lumen's Quantum Fiber business, which serves 1 million subscribers across 11 states, and transition its residential internet customers to AT&T Fiber.
As part of the agreement, Lumen will retain its fiber backbone assets and copper network, which will enable the company to continue investing in new fiber solutions and photonics equipment. The sale is expected to reduce Lumen's debt by $4.8 billion, providing the company with the financial flexibility to pursue its growth plans. Lumen aims to expand its intercity fiber route miles from 17 million to 47 million by 2028, further solidifying its position in the enterprise market.
The acquisition will enable AT&T to enhance its fiber-optic network and provide high-speed internet services to an additional 1 million customers in 11 states, including Oregon. Customers in Portland, Lake Oswego, and Vancouver will be among those affected by the transition to AT&T Fiber. The deal is a significant development in the telecommunications industry, highlighting the growing importance of fiber-optic networks in delivering high-speed internet services.
The sale of Lumen's consumer fiber business to AT&T marks a significant shift in the company's strategy, as it seeks to focus on its enterprise and AI initiatives. With the proceeds from the sale, Lumen is well-positioned to invest in new technologies and expand its fiber network, while AT&T will enhance its fiber-optic capabilities and deliver high-speed internet services to a broader customer base.