AT&T Mulling Multibillion-Dollar Joint Venture For Fiber Network Growth: Report
The carrier giant is reportedly in early talks with Morgan Stanley to set up a joint venture with an infrastructure provider that would invest billions of dollars to grow the carrier’s fiber network.
AT&T has kicked off discussions around the creation of a joint venture with an infrastructure partner that would invest billions of dollars to help the carrier aggressively build out its fiber-optic network, according to a report published Wednesday.
The venture is expected to be valued between $10 billion to $15 billion, the Bloomberg report said, citing people familiar with the matter.
AT&T did not respond to CRN’s request for comment prior to publication.
AT&T is allegedly working with Morgan Stanley to bring an infrastructure partner to the table. While still early and the discussions with infrastructure investors could fall apart, AT&T could also find a partner as soon as this year or in 2023, the report said.
The Dallas-based carrier has shared plans during its recent earnings calls to re-focus its efforts on building out its core fiber and 5G footprint after offloading the ill-fated WarnerMedia business unit.
The carrier is aggressively pursuing broadband customers outside its traditional 21-state footprint. AT&T has already started to take on fiber projects in new states such as Arizona and plans to expand to more in an effort to boost subscriber growth.
During the company’s most recent fiscal quarter which ended June 30, Total revenue was $29.64 billion, a 17.1 percent decrease from $35.74 billion in the same quarter one year earlier, which the carrier attributed to the impact of its divested businesses and lower business wireline revenue.
AT&T is scheduled to share its Q3 2022 earnings on Thursday morning.