AT&T is reportedly in discussions to acquire Lumen Technologies’ consumer fiber operations in a deal that could be valued at over $5.5 billion, according to Bloomberg News.
Following the report, shares of Lumen dropped by more than 14 percent, reflecting investor reactions to the potential sale.
Lumen’s decision to explore selling its consumer fiber business aligns with its strategy to focus on artificial intelligence-driven growth while managing the ongoing decline of its traditional legacy business.
In December, Reuters had reported that Lumen had initiated the process to divest its consumer fiber operations. The fiber-optic cable provider has an extensive network of over 1,700 wire centers, with its consumer fiber services currently available in about 400 of them. By shifting away from its residential fiber operations, Lumen aims to concentrate resources on more lucrative enterprise and AI-driven opportunities.
For AT&T, acquiring Lumen’s consumer fiber business would complement its investment in high-speed fiber internet services. The telecom giant has been focusing on expanding its fiber infrastructure to accelerate subscriber growth and boost revenue.
AT&T’s capital expenditures (Capex) were $6.8 billion in Q4 2024, with a total of $20.3 billion for the year, while capital investment reached $7.1 billion in Q4 and $22.1 billion for 2024.
The company has reported 307,000 AT&T Fiber additions in Q4, marking at least 200,000 net adds for 20 consecutive quarters. Consumer broadband revenues rose 7.8 percent year over year to $2.9 billion in Q4 and reached $11.2 billion for the year, reflecting a 7.2 percent increase.
AT&T Fiber saw 1.0 million additions in 2024, maintaining a streak of at least 1 million net adds for seven consecutive years, with fiber coverage extending to 28.9 million consumer and business locations.
Operating expenses in Q4 were $27.0 billion, up from $26.8 billion in the prior-year quarter, driven by higher depreciation from Open RAN network modernization, fiber investments, and network upgrades.
Earlier this month, AT&T provided a first-quarter forecast that aligned with analysts’ expectations, reinforcing confidence in its strategic direction. If the deal proceeds, it could further strengthen AT&T’s market position by increasing its fiber footprint and improving its competitiveness in the high-speed internet sector.
TelecomLead.com News Desk
