AT&T will form a new fiber joint venture with BlackRock’s Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPP Investments), as the US telecommunications giant seeks to accelerate the expansion of its fiber network into more communities across the country.
The partnership will combine two existing fiber businesses, Forged Fiber 37 and Gigapower, creating a broader platform that will allow AT&T to expand its fiber footprint while reducing the amount of capital it has to commit directly to the expansion.
AT&T, which describes itself as the largest fiber provider in the US, said the new venture will target major metropolitan areas across 16 states.
AT&T, GIP and CPP to Split Ownership
Under the agreement, AT&T will hold a 50% stake in the new joint venture, while GIP and CPP Investments will jointly own the remaining 50%.
The venture will bring together Forged Fiber 37, the AT&T unit that holds the fiber assets and operations acquired from Lumen Technologies, and Gigapower, AT&T’s existing wholesale fiber partnership with GIP.
The combination is expected to create a larger fiber platform capable of supporting further network deployment and serving additional markets. AT&T has increasingly relied on partnerships and outside capital to expand its fiber infrastructure while limiting the pressure on its own balance sheet.
The new structure will give AT&T what it described as a “capital-light” route to expand its fiber network beyond its traditional service areas and rather than funding the entire cost of network expansion itself, AT&T will share ownership and investment requirements with institutional infrastructure investors.
The approach could allow the company to reach more metropolitan markets while preserving capital for other priorities, including investment in its core business and shareholder returns.
The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions.
