AT&T Expands Fiber Footprint with $5.5 Billion CenturyLink Deal
AT&T is set to significantly expand it’s fiber internet service, announcing plans Wednesday to acquire CenturyLink’s fiber-optic business for $5.5 billion. The deal will bring approximately one million internet customers across 11 states under the AT&T Fiber umbrella.
Strategic Acquisition Details
The acquisition involves CenturyLink’s residential fiber internet operations, currently under its parent company, Lumen Technologies, based in Louisiana. Lumen will retain its business internet services and its legacy landline phone business that still operates on copper lines.
Did You Know?
Fiber-optic internet uses light to transmit data, offering significantly faster speeds and greater bandwidth compared to traditional copper lines. This allows for smoother streaming, faster downloads, and more reliable connectivity.
Market Impact and Customer Transition
CenturyLink currently holds the position of Oregon’s second-largest internet service provider, trailing only Comcast. Its customer base spans across Portland, Lake Oswego, and vancouver, Washington.With this acquisition, these subscribers will transition to AT&T Fiber, joining a network that already serves over 8.8 million customers nationwide.
Geographic Expansion
Beyond the Portland metropolitan area, the deal extends AT&T Fiber’s reach to several other major cities.CenturyLink home internet customers in Minneapolis,Seattle,Phoenix,Las Vegas,Salt Lake City,and Denver will also be integrated into the AT&T Fiber network.
Telecom Landscape and Historical Context
While AT&T and Comcast operate across much of the United states, the telecom industry still features regional players with roots in the “Baby Bells” that emerged from the 1984 AT&T breakup. CenturyLink represents the latest iteration of a regional phone company formerly known as US West, primarily serving the Northwest and Mountain west regions.
Employee Transition and Future Growth
As part of the acquisition, certain employees
will transfer from CenturyLink to AT&T. Though, AT&T has not disclosed the exact number of employees who will be retained or its current workforce size in Oregon. The company also refrained from specifying the number of internet customers CenturyLink has in Oregon.
AT&T has stated its intention to significantly grow
the number of customers in CenturyLink’s markets. Achieving substantial customer growth will likely involve competing directly with Comcast to attract subscribers.
Pro Tip:
When choosing an internet provider, consider factors like speed, reliability, data caps, and customer service. Fiber-optic connections generally offer the best performance, but availability and pricing can vary by location.
Parallel Developments in the Region
A similar transition is underway in Portland’s suburbs, where Ziply Fiber, serving much of Washington County and east Multnomah County, is being acquired by Bell Canada for $5 billion.
