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AT&T says the initiative will help support their plan to reach more than 60 million fiber locations by the end of 2030.
By Brad Randall, Broadband Communities
Three entities — AT&T, Global Infrastructure Partners, and Canada Pension Plan Investment Board — have agreed to form a U.S. fiber joint venture that aims to accelerate the expansion of fiber internet across America, the companies announced Tuesday.
The joint venture will combine Forged Fiber 37 — a newly created AT&T subsidiary holding network assets, operations, and the fiber build engine recently acquired from Lumen — with Gigapower, which is AT&T’s existing wholesale fiber joint venture with Global Infrastructure Partners (GIP). The new entity will operate as a commercial open access wholesale fiber company, according to AT&T, which will hold a 50% ownership stake in the joint venture.
Meanwhile, GIP and CPP Investments will collectively hold the remaining 50%, AT&T announced Oct. 6.
AT&T says the initiative supports their plan to reach more than 60 million fiber locations by the end of 2030.
At the close of 2025, AT&T reported passing 32 million in the U.S. with fiber.
The joint venture also provides a capital-light path for AT&T to expand fiber service into major metropolitan areas across 16 states, including Arizona, Colorado, Florida, Oregon, and Washington, AT&T said.
“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.”
The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.
AT&T expects to receive cash proceeds at closing, which it plans to direct toward capital allocation priorities, including funding ongoing operations, returning capital to shareholders, and reaching its net-debt-to-adjusted EBITDA ratio target within approximately three years.
Until the transaction closes, AT&T said they’ll continue reporting Forged Fiber 37 as held-for-sale and discontinued operations.
Some AI tools were used in the crafting of this report.
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