AT&T (NYSE: T) has agreed to form a fiber joint venture with Global Infrastructure Partners (GIP), a part of BlackRock, and Canada Pension Plan Investment Board (CPP Investments), according to a company press release dated Oct. 6, 2026.

The joint venture will combine Forged Fiber 37 — a subsidiary AT&T created after acquiring substantially all of Lumen Technologies' mass markets fiber business in February 2026 — and Gigapower, AT&T's existing wholesale fiber joint venture with GIP. The combined entity will operate as a wholesale fiber commercial open access company.

Under the terms of the agreement, AT&T will hold a 50% ownership stake in the joint venture, with GIP and CPP Investments collectively holding the remaining 50%. AT&T said it intends to use proceeds from the transaction to support its net-debt-to-adjusted EBITDA ratio target of approximately 2.5x within three years, fund continued business investment, and return capital to shareholders.

The joint venture is intended to support AT&T's stated goal of reaching more than 60 million fiber locations by the end of 2030, with planned expansion across major metro areas in 16 states, including Arizona, Colorado, Florida, Oregon, and Washington.

After closing, AT&T does not expect to consolidate the joint venture's financial results, but plans to report its share of equity income or loss in earnings, including adjusted EPS from continuing operations. Forged Fiber 37 will continue to be reported as held-for-sale and discontinued operations until the transaction closes.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals. AT&T said it reiterates the financial outlook provided in its second-quarter 2026 earnings release.