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AT&T has agreed to combine its Gigapower wholesale fiber venture and Forged Fiber 37, the subsidiary holding fiber assets and operations acquired from Lumen, in a new U.S. joint venture with Global Infrastructure Partners and CPP Investments. The companies announced the agreement on October 6, 2026, saying the partnership is intended to speed fiber-network expansion beyond AT&T’s traditional service areas.
AT&T will own 50% of the combined venture, while GIP, a part of BlackRock, and Canada Pension Plan Investment Board will collectively own the other 50%. The companies did not disclose the transaction’s value or how the outside investors will divide their stake. AT&T expects the transaction to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.
Two fiber businesses to operate under one venture
The new company will operate as a wholesale fiber provider using an open-access commercial model. Its assets will combine Gigapower, AT&T’s existing wholesale fiber joint venture with GIP, and Forged Fiber 37, which holds network assets, construction capabilities and operations associated with AT&T’s acquisition of Lumen’s Mass Markets fiber business.
AT&T said Forged Fiber 37 and Gigapower together are expected to give the venture nearly 5 million fiber locations at closing, including service to more than 1 million AT&T fiber subscribers. The footprint is expected to span major metropolitan areas in 16 states. AT&T listed Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Nebraska, Nevada, Oregon, Utah and Washington for Forged Fiber 37; Gigapower operates in Alabama, Arizona, Florida, Minnesota, Nevada, New Mexico, Pennsylvania, North Carolina and South Carolina.
In an open-access arrangement, the network owner wholesales access to other service providers rather than limiting use to a single retail operator. AT&T said the venture’s network and build capabilities will support its own retail service, while the announcement did not specify which other providers will use the combined infrastructure or on what commercial terms.
AT&T expects proceeds and a different reporting structure
AT&T said it expects to receive proceeds when the deal closes, but did not provide an amount. The company said it may use the money in line with its capital-allocation priorities, including progress toward its target of reducing net debt to adjusted EBITDA to around 2.5 times within approximately three years, continued business investment and shareholder returns.
Until the deal closes, AT&T expects to report Forged Fiber 37 as held for sale and within discontinued operations, excluding its operating results and direct cash flows from continuing operations. After closing, AT&T does not expect to consolidate the joint venture’s results; instead, it plans to report its share of the venture’s equity income or loss, including in adjusted earnings per share from continuing operations.
The announcement did not provide the venture’s projected capital spending, construction schedule or annual build targets. It also did not specify how much of the combined company’s future investment will come from each partner.
Part of a broader fiber expansion plan
The partnership follows AT&T’s February 2, 2026 closing of its acquisition of substantially all of Lumen’s Mass Markets fiber business. AT&T said the acquired customer relationships and network assets were included in the transaction, with fiber network assets placed in the Forged Fiber 37 subsidiary.
AT&T’s stated goal is to reach more than 60 million consumer and business locations with fiber by the end of 2030. The company expects approximately 50 million of those locations to be reached through its owned-and-operated network, with the balance involving the joint venture, acquired Lumen assets and other commercial open-access providers. The target includes locations passed or served by fiber; it is not a projection that every location will become a paying customer.
AT&T said the venture’s construction platform will help extend service into major metro areas beyond its traditional footprint, while allowing the company to offer fiber alongside its 5G wireless services. CEO John Stankey said the arrangement would support network expansion and the company’s effort to grow combined fiber and wireless relationships. GIP and CPP Investments also pointed to rising demand for high-capacity connectivity in statements accompanying the announcement.
Closing remains subject to approvals
The parties have set the first half of 2027 as their expected closing window, rather than a fixed completion date. Regulatory review and other customary closing conditions remain outstanding, and the announcement did not identify the specific approvals required or provide further milestones before completion.
AT&T framed the deal as a way to bring in infrastructure-investor capital while retaining half ownership and maintaining a commercial connection to the network. The final financial contribution, investor-level ownership split and detailed construction commitments were not disclosed in the announcement, leaving those terms unresolved ahead of closing.
