Can AT&T's U.S. Fiber Expansion Deal With GIP & CPP Boost the Stock?
AT&T Inc. T has agreed to form a new U.S. fiber joint venture with Global Infrastructure Partners ("GIP") and the Canada Pension Plan Investment Board ("CPP Investments"). The partnership aims to accelerate fiber expansion and bring high-speed Internet access to more communities across the country.
The new joint venture will include AT&T’s subsidiary, Forged Fiber 37, which holds the fiber build engine, network assets and operations acquired from Lumen Technologies, Inc. LUMN, along with Gigapower, its existing wholesale fiber joint venture with GIP. It will operate as a wholesale commercial open-access fiber company, supporting AT&T’s network growth across major metropolitan areas in 16 states through a capital-light model while allowing multiple service providers to access the infrastructure.
AT&T will own 50% of the joint venture, while GIP and CPP Investments will collectively own the remaining 50%. The company plans to use the transaction proceeds to reduce debt, invest in its business and return capital to shareholders. The deal is expected to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions.
The initiative supports AT&T’s goal of reaching more than 60 million fiber locations by the end of 2030. The expanded fiber footprint is expected to create opportunities to grow high-value customer relationships by combining broadband and 5G wireless services, supporting the company’s strategy of offering converged connectivity solutions.
How Are Competitors Focusing on Fiber?
AT&T faces stiff competition from Verizon Communications, Inc. VZ and T-Mobile US, Inc. TMUS. Verizon is strengthening its fiber network to expand high-speed broadband access across the United States. The company is deepening its fiber investment through a multiyear agreement with Corning Incorporated GLW for more than 80 million miles of optical fiber from 2027 to 2032. Verizon’s fiber focus supports growing demand for advanced connectivity, including applications linked to cloud computing and artificial intelligence.
T-Mobile is expanding its fiber presence through partnerships that allow it to enter more markets and broaden its home broadband offerings. The company is pairing its 5G network with fiber services to give customers more options for high-speed connectivity. This approach allows T-Mobile to leverage its national brand and distribution alongside established fiber operators to scale its broadband business more efficiently.
T’s Price Performance, Valuation & Estimates
AT&T shares have lost 6.6% over the past year against the industry’s growth of 132.3%.
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From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.27, below the industry tally of 8.67.
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Earnings estimates for 2026 have decreased 0.4% to $2.33 over the past 60 days, while the same for 2027 have decreased 0.8% to $2.55.
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AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
