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
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.
Frequently asked questions
Read more AT&T Investor Relations news
