AT&T to Form Fiber JV With BlackRock's GIP and CPP Investments

• The joint venture will combine Forged Fiber 37 (AT&T's unit holding fiber assets acquired from Lumen Technologies) and Gigapower (AT&T's existing wholesale fiber venture with GIP)
• AT&T plans to use proceeds from the deal to reduce its net-debt-to-adjusted EBITDA ratio to approximately 2.5 times within three years, fund business investments, and return capital to shareholders
• The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions

AT&T Forms Fiber Joint Venture with BlackRock's GIP and CPP Investments

AT&T announced Tuesday it will establish a fiber joint venture with BlackRock's Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPP Investments) to accelerate fiber network expansion across the United States.

Deal Structure:

• AT&T will hold 50% ownership, while GIP and CPP Investments will jointly own the remaining 50%
• The venture combines two entities: Forged Fiber 37 (AT&T's unit containing fiber assets acquired from Lumen Technologies) and Gigapower (AT&T's existing wholesale fiber venture with GIP)
• Expected closing: first half of 2027, pending regulatory approvals

Strategic Rationale:

The partnership provides AT&T with a "capital-light" expansion strategy, enabling the telecom giant to extend fiber infrastructure beyond its traditional service areas into major metropolitan markets across 16 states. This approach allows America's largest fiber provider to accelerate growth while managing capital allocation more efficiently.

Financial Implications:

• AT&T will receive undisclosed proceeds at closing
• Funds will be allocated to reduce leverage, targeting a net-debt-to-adjusted EBITDA ratio of approximately 2.5x within roughly three years
• Additional capital will support business investments and shareholder returns

Market Impact:

The deal represents a significant infrastructure play, combining institutional capital from major investors with AT&T's operational expertise. The transaction underscores the ongoing demand for fiber infrastructure investments and demonstrates how telecommunications companies are increasingly partnering with financial players to fund network expansion while maintaining balance sheet discipline. The venture positions AT&T to compete more aggressively in the fiber broadband market without shouldering the full capital burden independently.