New Fiber Venture
AT&T and Investors Agree to Form Major U.S. Fiber Venture
Anonymous
AT&T, Global Infrastructure Partners and CPP Investments have agreed to combine AT&T’s Gigapower venture with Forged Fiber 37, which holds fiber assets and operations acquired from Lumen, in a wholesale, open-access fiber company. The partners say the venture will speed expansion to more U.S. communities and help meet rising demand for high-capacity connectivity, including from AI applications; the transaction is expected to close in the first half of 2027. The structure follows a common model in which infrastructure investors help fund network expansion while the telecom operator retains a central operating role. Its financial impact will depend on details such as the ownership split, asset valuation, cash proceeds and the venture’s leverage, which could clarify whether the arrangement meaningfully reduces AT&T’s buildout risk or primarily monetizes its fiber assets.
Key Points
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AT&T said the venture could help it grow higher-value customer relationships by selling fiber and wireless connectivity together; the company says customers subscribing to both receive its fastest converged experience.
2
The venture combines Gigapower, AT&T’s existing wholesale fiber joint venture with GIP, and Forged Fiber 37, which holds the build engine as well as the network assets and operations acquired from Lumen.
3
Newsquawk notes that pension and sovereign funds have repeatedly invested in fiber and tower assets, attracted by contracted cash flows, and says similar deals have often been viewed as mildly credit-positive for the operator but neutral to slightly negative for overlapping rival fiber builders.
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