AT&T, Inc., Global Infrastructure Partners (GIP), part of BlackRock, and Canada Pension Plan Investment Board (CPP Investments) have agreed to establish a U.S. fiber joint venture aimed at expanding fiber broadband availability to more homes across the country.

The proposed joint venture will operate as a wholesale, commercial open-access fiber company, combining Forged Fiber 37—a newly created subsidiary holding fiber construction capabilities, network assets and operations recently acquired by AT&T from Lumen, with Gigapower—AT&T’s existing wholesale fiber joint venture with GIP.

The partners intend to accelerate fiber network construction in additional communities to address growing demand for high-capacity connectivity. The initiative also supports AT&T’s goal of reaching more than 60 million fiber locations by the end of 2030, as artificial intelligence (AI) and other applications increase demand for network capacity and performance.

“Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, Chairman and CEO of AT&T. He noted that the partnership is intended to expand access to high-speed fiber connectivity and support AT&T’s strategy to grow its fiber and 5G offerings.

Mark Florian, Head of GIP Mid-Markets Funds, said the combination of Gigapower and Forged Fiber 37 is intended to address rising demand for high-capacity broadband while creating an investment platform focused on digital infrastructure.

James Bryce, Managing Director and Head of Infrastructure at CPP Investments, said the venture will combine AT&T’s fiber expertise with investment capital to support network expansion and pursue long-term investment returns for the CPP Fund.

Network Expansion and Market Reach

The joint venture’s fiber construction capabilities and network assets are expected to support AT&T’s expansion beyond its traditional service areas. The arrangement is designed to provide AT&T with additional capital to support fiber deployment, particularly in major metropolitan areas across 16 states. Those states include Arizona, Colorado, Florida, Oregon and Washington.

AT&T plans to combine the venture’s fiber build capabilities with its existing distribution and customer relationships to expand the availability of fiber internet and 5G wireless services. The strategy is also intended to support growth in customers who subscribe to both fiber broadband and wireless services.

The partnership brings together AT&T’s network expertise and operating capabilities with investment capital from GIP and CPP Investments, with the stated objective of expanding fiber infrastructure in response to increasing demand for reliable, high-capacity connectivity.

Ownership, Financial Structure and Transaction Timing

Under the agreement, AT&T will own 50% of the joint venture, while GIP and CPP Investments will collectively hold the remaining 50%.

AT&T expects to receive proceeds when the transaction closes. The company plans to allocate the proceeds in accordance with its capital allocation priorities, which include achieving its net-debt-to-adjusted EBITDA ratio to approximately 2.5 times within about three years, continuing to invest in its 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 closing, AT&T expects to continue classifying Forged Fiber 37 as held for sale and reporting it within discontinued operations, with its operating results and direct cash flows excluded from continuing operations.

Following the transaction’s completion, AT&T does not expect to consolidate the joint venture’s financial results. Instead, the company plans to report its share of the venture’s equity income or loss in earnings, including in adjusted earnings per share from continuing operations.

The proposed transaction represents a further step in AT&T’s fiber expansion strategy, using a partnership structure to support network deployment while sharing ownership with infrastructure investors.

Source: AT&T

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