AT&T joins infrastructure investors in US fiber venture

Why it matters

AT&T says the arrangement provides a less capital-intensive route to expand fiber beyond its established wireline markets and should generate closing proceeds for its capital-allocation priorities. Until completion, Forged Fiber 37 will remain classified as held for sale and discontinued operations; afterward, AT&T expects to recognize its portion of the venture's earnings rather than consolidate its results.

Key facts

• 1AT&T, Global Infrastructure Partners and CPP Investments agreed to establish a U.S. fiber joint venture that combines Forged Fiber 37 with Gigapower. prnewswire.com
• 2AT&T will hold 50% of the venture, and GIP plus CPP Investments will collectively hold the other 50%. prnewswire.com
• 3The companies expect the transaction to be completed in the first half of 2027 after required approvals and other standard conditions. prnewswire.com
• 4AT&T's stated objective is to reach more than 60 million fiber locations by the end of 2030. prnewswire.com
• 5AT&T intends to use transaction proceeds in line with its capital priorities, including pursuing a net-debt-to-adjusted EBITDA ratio in the 2.5x range within approximately three years. prnewswire.com
• 6After the deal completes, AT&T expects to record its share of the venture's equity income or loss instead of consolidating the venture's financial results. prnewswire.com

Open questions

• One report gives an expected closing date of early 2025, which conflicts with the first half of 2027 timing stated elsewhere.
• One report says each of the three parties will own 50%, which conflicts with the stated split of 50% for AT&T and 50% collectively for GIP and CPP Investments.
• The parties did not disclose transaction proceeds or the individual ownership percentages of GIP and CPP Investments.