AT&T mulls acquisition of Lumen’s consumer fibre unit 

News 

AT&T has entered into acquisition talks with Lumen Technologies’ consumer fibre operations, according to Bloomberg, citing people familiar with the matter 

A potential transaction between the two companies could value the unit at $5.5 billion.  

Sources say that discussions are still in the early stages and no formal decision has yet been made. 

As of the start of the year, Lumen’s residential broadband network covered 21.97 million premises across 16 US states. Of these, 4.16 million were using fibre, while the remaining 17.81 million relies instead upon legacy copper infrastructure. Lumen began the process of selling off the unit in December, as it seeks to “phase out its legacy mass markets business and reduce its sizable debt pile,” people familiar with the matter said. It has since started working with Goldman Sachs to gauge interest in the unit. 

At a financial conference late last year, Lumen’s CFO Chris Stansbury said the fibre business was “a great asset, but an asset that is probably better suited in somebody’s hands that has a wireless offering.” 

AT&T has been actively investing in fibre expansion as it seeks to strengthen its broadband offerings amid increasing competition from cable and alternative fibre providers. For example, last October, AT&T signed a multi-year deal with fibre specialist Corning to supply the fibre optics for the expansion of its broadband network across the US. Acquiring Lumen’s consumer fibre unit could accelerate AT&T’s ability to reach more customers, particularly in markets where it currently has limited infrastructure. 

AT&T is currently aiming to expand its fibre network to pass 50 million locations by 2029. 

In addition to talks with Lumen, last week Bloomberg reported that AT&T has been approached by BT regarding potential partnerships for BT’s international business. The article suggested that a partnership could include the sale of part of BT’s global division, although the discussions remain in the early stages. 

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Author: Ernestro Casas -

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