AT&T, Global Infrastructure Partners, and CPP Investments to Form New Fiber Joint Venture

After closing, AT&T expects to report its share of the venture's equity income or loss rather than consolidate its financial results.

Rhea-AI Summary

AT&T (T) affiliates agreed with Global Infrastructure Partners and CPP Investments affiliates to form a U.S. wholesale fiber joint venture. The venture will combine Forged Fiber 37, holding network assets and operations recently acquired from Lumen, with Gigapower, AT&T's existing fiber venture with GIP. AT&T will own 50%; GIP and CPP Investments will collectively own the remaining 50%.

AT&T expects the venture to accelerate fiber construction, supporting its plan to reach more than 60 million fiber locations by the end of 2030 and expand service beyond its traditional areas across 16 states. Closing is expected in the first half of 2027, subject to regulatory approvals and customary conditions. AT&T expects closing proceeds to support its capital allocation priorities, including a net-debt-to-adjusted EBITDA target in the 2.5x range within approximately three years. Its second-quarter 2026 financial outlook and capital allocation plan remain unchanged.

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Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAgreed fiber venture combines Forged Fiber 37 and Gigapower with investment from GIP and CPP Investments.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned fiber expansion supports AT&T's target of more than 60 million locations by the end of 2030.
• Minor point. Forward-looking: it has not happened yet and may not happen.Capital-light expansion is expected to extend AT&T fiber service beyond traditional areas across 16 states.
• Minor point. Forward-looking: it has not happened yet and may not happen.Combined fiber and wireless offerings are expected to help AT&T grow its converged customer base.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expected closing proceeds will support AT&T's capital allocation priorities, including investment and shareholder returns.
• Minor point. Forward-looking: it has not happened yet and may not happen.Leverage target remains in the 2.5x net-debt-to-adjusted EBITDA range within approximately three years.

Negative

• Minor pointRegulatory approvals remain pending for the transaction, expected to close in the first half of 2027.

News Explained

After closing, AT&T expects not to consolidate the joint venture; it will report its share of equity income, including in adjusted EPS from continuing operations.

While the agreed joint venture awaits its expected first-half 2027 close, AT&T will continue to report Forged Fiber 37 as held-for-sale and discontinued operations, excluding its results and direct cash flows from continuing operations.

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The joint venture will bring together Forged Fiber 37 and Gigapower under one wholesale fiber commercial open access company to accelerate expansion of fiber internet across more U.S. communities

Key Takeaways:

• New joint venture will extend AT&T's fiber scale advantage, bringing the unrivaled benefits of fiber connectivity – ultra high-speed, unmatched capacity, and world-class reliability – to more Americans while laying the foundation for an AI-enabled future
• This joint venture will create new opportunities for AT&T to grow high-value customer relationships by offering fiber and wireless connectivity services together; customers who subscribe to both enjoy the fastest converged experience in the nation¹
• Leading digital infrastructure investors Global Infrastructure Partners and CPP Investments will support AT&T's plans to accelerate fiber expansion across more U.S. communities
• Transaction is expected to close in the first half of 2027

DALLAS, Oct. 6, 2026/PRNewswire/ -- AT&T Inc. (NYSE:T) affiliates and affiliates of Global Infrastructure Partners ("GIP"), a part of BlackRock, and Canada Pension Plan Investment Board ("CPP Investments") have agreed to form a new U.S. fiber joint venture (the "JV") to bring fiber to more homes across the country.

The JV will operate as a leading wholesale fiber commercial open access company and will include Forged Fiber 37 – the newly created subsidiary holding the fiber build engine, network assets, and operations that AT&T recently acquired from Lumen, and Gigapower – AT&T's existing wholesale fiber joint venture with GIP.²

The investments by AT&T – America's largest fiber provider – and GIP and CPP Investments will enable the planned acceleration of fiber builds in more communities across the country. The JV will help accelerate delivery of critical infrastructure needed to help meet America's growing demand for high-performance advanced connectivity as AI begins to reshape network traffic. This supports AT&T's plans to reach more than 60 million fiber locations by the end of 2030.³

"Fiber is the definitive connectivity technology for an AI-driven world," said John Stankey, Chairman and CEO of AT&T. "Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity."

"Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services," added Mark Florian, Head of GIP Mid-Markets Funds. "By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy."

"Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy," said James Bryce, Managing Director and Head of Infrastructure at CPP Investments. "By combining AT&T's extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund."

The JV's well-established fiber construction capabilities from Forged Fiber 37 and Gigapower will help AT&T continue to efficiently expand its fiber service beyond its traditional service areas. Partnering with GIP and CPP Investments underscores market confidence in AT&T's strategy and ongoing fiber build while providing AT&T with a capital-light path to further expand its fiber service in major metro areas across 16 states, including Arizona, Colorado, Florida, Oregon, and Washington. Pairing the JV's fiber build capabilities with AT&T's extensive distribution will enable AT&T to continue offering more customers fiber internet and 5G wireless connectivity and grow its base of high-value converged customers.

Terms of the Agreement and Timing to Close
Formation of the JV aligns with AT&T's previously stated plan to bring on an equity partner for Forged Fiber 37. Under the agreement, AT&T will have 50% ownership of the JV, with GIP and CPP Investments collectively owning 50%. AT&T expects to receive proceeds at closing of the transaction which it intends to use in a manner consistent with its capital allocation priorities, including helping the Company achieve its net-debt-to-adjusted EBITDA ratio target in the 2.5x range within approximately three years, funding continued investment in the business, and returning capital to shareholders. The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.

Until close, AT&T expects to continue to report Forged Fiber 37 as held-for-sale and discontinued operations, with the results of operations and direct cash flows excluded from the Company's continuing operations. After close, AT&T does not expect to consolidate the JV's financial results but plans to report its share of the equity income (loss) in earnings, including adjusted EPS from continuing operations.

AT&T reiterates the financial outlook and capital allocation plan provided in its second-quarter 2026 earnings release.

1 Based on Ookla® Speedtest Intelligence® data, United States, 1H 2026. See https://www.ookla.com/research/reports/united-states-converged-report-h1-2026 for details. All rights reserved.

2 On February 2, 2026, AT&T closed its transaction with Lumen Technologies, Inc. (Lumen) and acquired substantially all of Lumen's Mass Markets fiber business. The acquisition included customer relationships, which the Company includes with its advanced home internet services, and fiber network assets that were placed in a wholly owned subsidiary, Forged Fiber 37 Services, LLC.

3 Total consumer and business locations reached with fiber represents the sum of: (1) AT&T Owned and Operated locations, which reflect its customer locations passed by AT&T's fiber network and (2) AT&T Fiber Ventures locations, which represent locations served from the acquired mass markets fiber business, Gigapower, and other commercial open access providers.

About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

About Global Infrastructure Partners (GIP), a part of BlackRock
Global Infrastructure Partners (GIP), a part of BlackRock, is a leading infrastructure investor that specializes in investing in, owning, and operating some of the largest and most complex assets across the energy, transport, digital infrastructure, and water and waste management sectors. 

GIP's scaled platform has over $200 billion in assets under management. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our clients' capital and create positive economic impact for communities. For more information, visit www.global-infra.com

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at investors.att.com. Net debt and adjusted EBITDA estimates depend on future levels of revenues, expenses and other metrics which are not reasonably estimable at this time. Accordingly, AT&T cannot provide reconciliations between projected free cash flow and projected net debt-to-adjusted EBITDA and the most comparable GAAP metrics and related ratios without unreasonable effort.

© 2026 AT&T Intellectual Property. All rights reserved. AT&T and the Globe logo are registered trademarks of AT&T Intellectual Property.

 

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SOURCE AT&T

FAQ

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What will AT&T own in the new fiber joint venture?

AT&T will own 50% of the venture, with GIP and CPP Investments collectively owning the other 50%. The venture will combine Forged Fiber 37, which holds fiber network assets and operations acquired from Lumen, with Gigapower, AT&T's existing wholesale fiber venture with GIP.

When is AT&T's fiber joint venture expected to close?

The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.

How will AT&T account for Forged Fiber 37 and the new fiber venture?

Until closing, AT&T expects to report Forged Fiber 37 as held-for-sale and discontinued operations, excluding its operating results and direct cash flows from continuing operations. After closing, AT&T does not expect to consolidate the venture's financial results; it plans to include its share of equity income or loss in earnings, including adjusted earnings per share from continuing operations.

What counts toward AT&T's fiber location target?

The target combines AT&T Owned and Operated locations with AT&T Fiber Ventures locations. The first category covers customer locations passed by AT&T's fiber network. The second includes locations served through the acquired mass markets fiber business, Gigapower and other commercial open access providers.