Innovative joint venture to fuel significant fiber investment
across America
Gigapower to deploy a multi-gig fiber network to new cities,
including Las Vegas
DALLAS and NEW
YORK, May 11, 2023 /CNW/ -- AT&T*
(NYSE:T) and BlackRock (NYSE:BLK), through a fund managed by
its Diversified Infrastructure business, have closed their joint
venture to form Gigapower, LLC. Gigapower plans to provide a
state-of-the-art fiber network to internet service providers and
other businesses in parts of select metro areas throughout the
country using a commercial wholesale open access platform.
With Gigapower, AT&T — one of the largest investors in fiber
in America — and BlackRock — one of the largest
investors in infrastructure — have come together to give more
Americans access to super-fast, reliable, high-capacity fiber. At a
time when broadband connectivity has never been more in demand or
more critical to our day-to-day lives, both companies believe now
is the time to create the United
States' largest commercial wholesale open access fiber
network to bring high-speed connectivity to more Americans.
As Gigapower's first tenant, AT&T will be able to greatly
expand the number of customers and communities with access to the
award-winning fiber internet service, AT&T Fiber.
"We believe fiber connectivity changes everything. That's why
we're already one of the biggest investors in fiber in the United States," said John Stankey, CEO of AT&T. "The demand for
high-speed connectivity is unprecedented, and through this
innovative partnership with BlackRock, one of the world's foremost
investors in infrastructure, we're able to connect even more people
and businesses, accelerating our efforts to help close the digital
divide."
"BlackRock is pleased to help bring critical broadband services
to communities across America," said Larry
Fink, Chairman and CEO, BlackRock. "This investment on
behalf of BlackRock's clients will advance efforts to bridge the
digital divide and spur economic growth in the communities where
Gigapower operates."
AT&T is already the nation's largest fiber internet
provider1 and plans to pass 30 million-plus
consumer and business locations in its traditional service
areas by the end of 2025. Opportunities such as Gigapower
will enable AT&T to expand its fiber service reach beyond its
traditional service areas in order to deliver state-of-the-art
broadband access technologies to more communities across the
country. BlackRock brings significant expertise, capital and a
commitment to invest in future-proof access technology led by
best-in-class operating teams.
New Fiber Cities and Big Plans
In addition to
Las Vegas, Gigapower now
expects to expand beyond its previously announced fiber
deployment in Mesa, to the Chandler and Gilbert areas of
Arizona. Gigapower also plans to build fiber in parts of
Northeastern Pennsylvania
(including Wilkes-Barre and
Scranton) as well as parts of
Alabama and Florida that are outside AT&T's current
service areas.
"Recently our first wholesale customer, AT&T, activated
end-user customers on the Gigapower fiber network in Mesa, and that
is just the beginning," said Bill
Hogg, CEO of Gigapower. "We have big plans to deploy
multi-gig fiber to many more cities across our country. Our
partnerships with communities like Las
Vegas and others are essential to building our fiber network
and creating a commercial wholesale open access platform that will
benefit consumers and businesses across the U.S."
From metro areas to underserved rural areas, all communities
require powerful digital infrastructure to support their economies.
With nearly 650,000 residents and more than 42 million annual
visitors, Las Vegas is a great
example of such a community. Fiber delivers the fast symmetrical
speeds and high bandwidth needed to keep residents and visitors
connected to the people, events, and businesses that matter most to
them.
"Connecting Las Vegas is more important than ever. From
families, students, workers, consumers, and small and large
businesses, access to the latest broadband technology will elevate
our community and economy, paving the way to a strong future," said
Carolyn G. Goodman, Mayor of
Las Vegas. "Additional and
continuing broadband investment will ensure that Las Vegas remains at the forefront of the
digital economy and is a great place to live, work, and visit."
Gigapower Transaction Terms
AT&T and BlackRock
will jointly own and govern Gigapower. The closing of the
Gigapower joint venture does not impact AT&T's 2023 guidance,
including for capital investment and free cash flow, which was
announced in January 2023 and
affirmed in April 2023, which the
company continues to expect to meet.
1Based on the number of fiber-to-the-home households
using publicly available data.
*About AT&T
We help more than 100 million U.S.
families, friends and neighbors, plus nearly 2.5 million
businesses, connect to greater possibility. From the first phone
call 140+ years ago to our 5G wireless and multi-gig internet
offerings today, we @ATT innovate to improve lives. For more
information about AT&T Inc. (NYSE:T), please visit us at
about.att.com. Investors can learn more at investors.att.com.
About BlackRock
BlackRock's purpose is to help more
and more people experience financial well-being. As a fiduciary to
investors and a leading provider of financial technology, we help
millions of people build savings that serve them throughout their
lives by making investing easier and more affordable. For
additional information on BlackRock, please visit
www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn:
www.linkedin.com/company/blackrock.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release
contains financial estimates and other forward-looking statements
that are subject to risks and uncertainties, and actual results
might differ materially. A discussion of factors that may affect
future results is contained in AT&T's filings with the
Securities and Exchange Commission. AT&T disclaims any
obligation to update and revise statements contained in this news
release based on new information or otherwise. This news release
may contain certain non-GAAP financial measures. Reconciliations
between the non-GAAP financial measures and the GAAP financial
measures are available on the company's website
at https://investors.att.com.
© 2023 AT&T Intellectual Property. All rights reserved.
AT&T and the Globe logo are registered trademarks of AT&T
Intellectual Property.
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