The acquisition includes around 95% of Quantum Fibre, Lumen’s fibre-optic internet service brand, along with approximately four million homes across 11 states and nearly one million subscribers.
Lumen will retain assets that will continue to serve as the foundation of its enterprise network, including all national, regional, state, and metro-level fibre backbone network infrastructure and associated real estate.
“The fibre-to-the-home business being sold is tremendously valuable thanks to the incredible work by the team and will now have even greater opportunity to grow with AT&T’s scale, consumer focus, and investment,” said Kate Johnson, president and CEO of Lumen.
The deal also sees Lumen retain its existing copper network, which primarily services consumer customers.
Lumen plans to use the cash raised by the sale to pay off its debts, with the firm suggesting it’ll reduce its capital expenditures by approximately $1 billion annually and ultimately improve its cash flow.
Johnson said retaining its core infrastructure will allow the firm to continue serving enterprise customers, with Lumen shifting its focus to become an enterprise digital networking company.
“We are sharpening our focus on enterprise customers, and this transaction enhances our financial flexibility, enabling us to reimagine networking for enterprises in a multi-cloud, AI-first world,” Johnson added.
The deal has been in the works for some time, with reports of talks surfacing back in March. Lumen had been looking for a buyer for its consumer fibre unit for a while, and enlisted banking giant Goldman Sachs to help find a buyer.
With Mass Market fibre to be set aside, Lumen said it plans to expand its vast nationwide footprint to support and scale its AI-driven networking efforts for hyperscalers, having already secured $8.5 billion through contracts with Meta, Google Cloud, and IBM.
“Lumen has a once-in-a-generation opportunity to build a digital networking company that will serve the needs of enterprise customers,” Johnson said. “Today, that’s in support of AI, and on the horizon, it’s quantum computing. This strategic decision is grounded in the expansive critical infrastructure we’re retaining and the forward-thinking digital future we’re building.”
The transaction is expected to close in the first half of 2026, subject to regulatory approval and closing conditions.
RELATED STORIES
Lumen and IBM join forces to deliver enterprise-grade AI at the edge
Google Cloud and Lumen team up to enhance network operations with AI
Meta taps Lumen to boost network capacity for AI service expansions
