AT&T and BlackRock to form Gigapower joint venture
DALLAS – AT&T (NYSE:T) and BlackRock Alternatives (BlackRock), through a fund managed by its Diversified Infrastructure business, have signed a definitive agreement to form a joint venture that will operate a commercial fiber platform. The newly formed joint venture — Gigapower, LLC — expects to provide a best-in-class fiber network to internet service providers (ISPs) and other businesses across the United States.
Gigapower will serve customers outside of AT&T's traditional 21-state wireline service footprint with fiber access technologies in innovative and efficient ways. And AT&T will leverage its nationwide wireless sales capabilities to sell fiber to customers in Gigapower territories.
Gigapower plans to deploy a reliable, multi-gig fiber network to an initial 1.5 million customer locations across the nation using a commercial open access platform. The Gigapower fiber deployment will be incremental to AT&T's existing target of 30 million-plus fiber locations, including business locations, by the end of 2025. Combined with existing efforts within AT&T's 21-state footprint, this capital efficient network deployment will advance efforts to bridge the digital divide, ultimately helping to provide the fast and highly secure internet people need. This network expansion will also help spur local economies in each of the communities in which Gigapower operates.
Following close, AT&T and BlackRock will jointly own and govern Gigapower. AT&T does not expect to consolidate Gigapower's financial results but does expect to report its consumer subscribers served through Gigapower in Consumer Wireline business unit operational results. Any impacts to AT&T's 2023 capital investment or free cash flow forecast will be included in AT&T's 2023 financial guidance when it announces fourth-quarter 2022 results in January 2023.
Read the full press release here.