AT&T CEO John Stankey might be locked into accommodating wireless communications contractors’ requests to abandon unsustainable matrix pricing and the carrier’s turfing structure to get FCC approval to acquire Lumen’s fiber business for $5.75 billion. AT&T will likely have to accede to similar agreements obtained by NATE, which appeared to be achieved in negotiations with Verizon for the carrier to receive the FCC’s blessing to acquire Frontier for $20 billion. Pictured (L to R) are Commissioner Nathan Simington, Chairman Brendan Carr, Stankey, and Commissioner Geoffrey Starks.
When AT&T’s $5.75 billion deal to buy Lumen’s Mass Markets fiber business, announced yesterday, closes in the first half of 2026, it won’t just turbocharge AT&T’s network footprint—it will also give tower crews a powerful new lever.
Because the FCC must sign off on the assignment of Lumen’s interstate service authorizations, AT&T is almost sure to face the same kind of contractor-friendly conditions the Commission imposed on Verizon in its Frontier acquisition. In that merger, Verizon agreed to 30-day payment terms, fair indemnity provisions, matrix-pricing adjustments, and ongoing working sessions with NATE: The Communications Infrastructure Contractors Association to overhaul unsustainable matrix practices as detailed by Wireless Estimator last Friday.
Regulatory Green Light Required
Under Section 214 of the Communications Act, any transfer of domestic interstate authority, such as Lumen’s incumbent local-exchange fiber network, must receive prior FCC approval. That review isn’t merely a formality: it’s where the Commission can—and does—condition its consent on public-interest obligations, including binding commitments to fair contract terms and timely payments.
The Deal Snapshot
-
Assets: ~1 million fiber subscribers; 4 million+ fiber-passed locations across 11 states
-
Price: $5.75 billion in cash (subject to customary adjustments)
-
Close: Expected H1 2026, pending DOJ antitrust sign-off and FCC approval
-
Growth: Integrate into AT&T Fiber, with a goal of reaching ~60 million fiber locations by year-end 2030
AT&T CEO John Stankey calls it “a significant investment in U.S. connectivity infrastructure that will create jobs and spur economic activity.” Over time, those Lumen subscribers will migrate to AT&T Fiber’s simple pricing, built-in security, and multi-gig speeds.
Given AT&T’s history of using depressed “turfing” matrix prices in parts of its footprint, the FCC is unlikely to rubber-stamp this merger without similar enforceable concessions. Contractors and industry groups should prepare to file comments, petitions, and ex parte presentations during the FCC’s public-interest review to ensure strong protections are written into the final order.
By leveraging Lumen’s incumbent build capabilities, AT&T expects to accelerate fiber deployments outside its traditional wireline regions—expanding reach in metros like Denver, Las Vegas, Phoenix, and Salt Lake City, plus underserved rural areas.
The deal promises to:
-
Create middle-class jobs in fiber construction and maintenance
-
Stimulate local economies through infrastructure investments
-
Offer all communications contractors a more predictable, sustainable business environment
With AT&T racing to double its fiber footprint, the FCC’s leverage in this approval process represents a rare opportunity to lock in fair contracting terms. If history repeats, the ultimate order won’t just expand broadband access—it will reshape the business environment for every contractor whose skilled professional technicians are on the ground or on a tower.
