AT&T forms JV to expand its FTTP reach

• AT&T has joined forces with investment firms GIP and CPP to form a new fibre-to-the-premises (FTTP) network joint venture
• The new wholesale operation will help AT&T extend its fibre broadband reach beyond its traditional wireline service areas
• The US telco aims to reach 60 million US premises with fibre, either directly or via the new venture, by the end of 2030 
• The move will help AT&T offer converged fixed/mobile broadband service packages to more Americans

AT&T has teamed up with investment firms Global Infrastructure Partners (GIP), a part of BlackRock, and Canada Pension Plan Investment Board (CPP Investments) to form a new wholesale fibre-to-the-premises (FTTP) network joint venture (JV) that will enable the giant US telco to more easily offer high-speed fixed broadband connectivity services to premises in 16 states outside its traditional wireline services areas.

The formation of the JV – in which AT&T will hold a 50% stake, while GIP and CPP jointly own the other half – is set to be completed in the first half of 2027. 

The resulting operation, which will offer wholesale FTTP connections to any ISP, will have commercial assets from day one, as it will be the new home for the “mass markets” fibre access broadband network assets that AT&T acquired from Lumen Technologies earlier this year as well as the Gigapower wholesale FTTP operation previously set up by AT&T and GIP. 

As a result, the as-yet-unnamed JV will start its life with a fibre access network that already provides commercial services to 1 million premises and which passes almost 5 million premises in 16 states – Alabama, Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Nebraska, Nevada, New Mexico, North Carolina, Oregon, Pennsylvania. South Carolina, Utah and Washington.

AT&T says the JV will provide it with a “capital-light path to further expand its fibre service in major metro areas across 16 states” and enable it to “continue offering more customers fibre internet and 5G wireless connectivity and grow its base of high-value converged customers”.

The telco says it “expects to receive proceeds at closing of the transaction which it intends to use in a manner consistent with its capital allocation priorities,” though it didn’t specify how much it expects to get and didn’t assign a market value to the planned JV.

What AT&T did say, though, is that the move “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,” and supports its “plans to reach more than 60 million fibre locations by the end of 2030”. 

It added: “AT&T intends to reach approximately 50 million of these locations with its owned and operated fibre, and the JV is expected to be its primary partner for reaching fibre locations outside of its traditional service areas.”

By the end of June this year, AT&T had reached 38.6 million US premises with its fibre access network infrastructure and noted in this earnings announcement that it is on track to reach more than 40 million by the end of 2026. Key telco rival Verizon expects to end 2026 with a FTTP network that reaches 32 million US premises.

AT&T’s chairman and CEO, John Stankey, stated: “Fibre is the definitive connectivity technology for an AI-driven world. Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fibre connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fibre, broaden availability of our award-winning services and grow our leadership in converged fibre and 5G connectivity.”

The news comes only days after AT&T announced a multiyear, $3bn supply contract with fibre-maker Corning that will support its FTTP rollout plans. 

The US fixed broadband services market, which is still dominated by the major cable operators Charter Communications (which recently completed its acquisition of Cox) and Comcast, is already large but expected to grow: According to Grand View Research, the sector was worth $63.6bn in 2025 and is set to grow to be worth $70.5bn this year and $146.6bn by 2033. 

- Ray Le Maistre, Editorial Director, TelecomTV