Dallas-based AT&T has closed its acquisition of substantially all of Lumen’s Mass Markets fiber business for $5.75 billion in an all-cash transaction.

When plans for the acquisition were announced last May, AT&T said the deal would enable it to significantly expand access to AT&T Fiber in major metro areas such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle, among other locales.

“America’s largest network is the best positioned in our industry to serve even more consumers—both in the home and on the go,” John Stankey, chairman and CEO of AT&T, said in a statement. “AT&T Fiber—America’s best and top-rated technology for getting on the internet—will be available to millions more people as we expand the service in 32 states.”

Stankey added that the investment will “create good-paying jobs, boost U.S. connectivity and bring the benefits of high-speed connections to more communities across the country.”

AT&T said the deal advances its lead against competitors with the best assets in the industry, continuing to meet customers where they are and delivering more value to shareholders.

Highlights of the deal

AT&T said the deal will add more than 1 million fiber subscribers to AT&T’s total customer count, with the opportunity to significantly increase the number of AT&T Fiber customers in the future. Using its “robust distribution,” the strengths of AT&T Fiber, and the value of the AT&T Guarantee, AT&T said it plans to increase current fiber penetration by about 25% within the acquired footprint to levels more in line with its AT&T Fiber penetration.

The deal increases the scale of AT&T’s fiber network as the company acquires more than 4 million customer locations across 11 states. AT&T also gains access to Lumen’s substantial fiber construction capabilities in these states, strengthening its ability for constructing fiber home internet connectivity outside of AT&T’s traditional wireline operating region. As a result, AT&T expects to accelerate the pace at which fiber is being built in these territories, supporting the company’s goal of reaching more than 60 million total fiber locations by the end of 2030. 

AT&T said the deal gives more American consumers the choice to purchase fiber and 5G services “from one trusted provider.” AT&T said that its ability to offer fiber broadband and 5G wireless connectivity together will allow it to grow its “base of high-value converged customer relationships within the acquired footprint.”

Customers with both AT&T Fiber and wireless services are more likely to recommend AT&T, remain customers longer, and provide the best returns, the company said.

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