AT&T is combining its two fiber joint ventures (JV) to forge a new US fiber company.

The carrier, along with BlackRock subsidiary Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPP Investments), has moved to combine Forged Fiber 37 and Gigapower under one wholesale fiber commercial open access company as part of plans to speed up AT&T's fiber rollout across the US.

AT&T has ambitions to reach 60 million locations across the US with its fiber network by 2030.

According to the carrier, the JV will operate as a wholesale fiber commercial open access company and will include Forged Fiber 37, the newly created subsidiary holding the fiber build engine, network assets, and operations that AT&T recently acquired from Lumen, and Gigapower, the company's existing wholesale fiber JV with GIP.

The JV will further accelerate AT&T's plans to hit its 60 million target, said the company, which has reached close to 40 million so far.

AT&T notes that the new JV will enable the company to "efficiently expand its fiber service beyond its traditional service areas," as the operator pushes to expand its fiber service in major metro areas across 16 states, which include Arizona, Colorado, Florida, Oregon, and Washington.

AT&T will own 50 percent of the JV, while the remaining 50 percent will be split between the GIP and CPP Investments.

"Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, chairman and CEO of AT&T. “Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans.

"By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity.”

The transaction is expected to close in the first half of next year, subject to customary closing conditions and regulatory approvals. Until the deal is closed, AT&T said it will continue to report Forged Fiber 37 as held-for-sale and discontinued operations.

Mark Florian, head of GIP mid-markets funds, added: “By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy."

For AT&T, the announcement comes hot off the heels of the carrier's $3 billion fiber deal with Corning, as covered by DCD's sister publication SDx Central.

Stankey said in July that this will be AT&T's largest year for fiber expansion so far.

A significant reason why the carrier is pushing for its largest fiber expansion year yet is down to its $5.75bn acquisition of Lumen's fiber business, which completed earlier this year. That deal added four million customer locations across 11 states.