The statue of AT&T’s spirit of communication, nicknamed “Golden Boy,” is now prominently displayed in the AT&T Discovery District. [Photo: Michael Samples]
The formation of Gigapower LLC, a joint venture between AT&T and Dallas-based BlackRock Alternatives, aims to increase Internet access in communities across the United States. The fiber trading platform could also revolutionize the industry’s business model by operating as an open access platform.
The company plans to provide advanced fiber access technologies to Internet service providers and businesses in the US, AT&T said in an announcement of the deal yesterday.
The impact on communities would be beneficial, the telecoms giant says, as the new venture seeks to strengthen the country’s digital infrastructure and ultimately lead to greater choice and affordability for customers.
“Now more than ever, people recognize that connectivity changes everything,” AT&T CEO John Stankey said in a statement. “The Gigapower joint venture offers customers and communities outside our traditional service areas the social and economic benefits of world-class technology and access to all that the Internet has to offer.”
Bridging the “digital divide” with fiber
Expanding broadband access can build more bridges across the so-called “digital divide.”
Mark Florian, Global Head of Diversified Infrastructure at BlackRock, shared his enthusiasm for the joint venture: “With Gigapower’s fiber infrastructure designed as an open access commercial platform, we can more efficiently connect the communities of United States with reliable broadband services, helping to bridge the digital divide.”
The joint venture’s multi-gig fiber network connectivity can provide a range of social and economic benefits to the communities it serves, according to the companies.
AT&T plans to leverage its nationwide wireless sales capabilities, and BlackRock will support Gigapower’s fiber deployment plans and shared infrastructure business model. Together, they say, the partnership is poised to drive innovation, create jobs and spur economic growth in the communities it connects with.
AT&T will be Gigapower’s first wholesale tenant
Gigapower’s formation could be a pioneer in the broadband industry in terms of the business model it employs.
Operating as an open access commercial platform, Gigapower will allow multiple companies to rent or lease its fiber network, which could increase competition in the industry and lower the prices of fiber access.
AT&T will be the first company to lease or lease Gigapower’s fiber network, giving them a chance to test the service before other companies.
In addition to providing essential revenue for Gigapower’s expansion plans, having AT&T as an anchor tenant means customers in areas outside the company’s traditional service footprint could receive fiber services.
The company gives the telecom giant a broader customer base when combined with AT&T’s current 21-state footprint, the company said.
The CEO of Gigapower is appointed
The new company will be led by AT&T veteran Bill Hogg, who is excited about what the network can do for users.
“Fiber is at the heart of digital commerce; our mission is to help local service providers gain fiber connectivity and deliver multi-gig capabilities in underserved areas,” Gigapower CEO Hogg said in a statement.
“We are developing a scalable commercial open access cable fiber network that will better serve these locations,” he said.
fiber nation
The success of the joint venture would expand AT&T’s current goal of providing more than 30 million locations with fiber by 2025, something the people of the United States desperately need, according to the telecommunications giant .
AT&T and BlackRock will jointly own and manage Gigapower. The Company is subject to regulatory approval and other closing conditions. AT&T said it won’t consolidate its financial results until it reports fourth-quarter 2022 results in January.
2023.
BlackRock Alternatives is part of the larger BlackRock organization and specializes in providing unique investment opportunities across multiple asset classes. This includes real estate, infrastructure, energy, commodities and private equity. BlackRock Alternatives’ Diversified Infrastructure business manages a fund that invests in global infrastructure assets such as transport, utilities and communications.
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