AT&T, BlackRock to form commercial fiber-optic platform
Reuters
Published Dec 23, 2022 07:49AM ET
(Reuters) - Wireless carrier AT&T Inc (NYSE:T) and fund manager BlackRock Inc (NYSE:BLK) are forming a joint venture to operate a fiber-optic platform in the United States, the companies said on Friday. The venture, Gigapower LLC, plans to deploy its network to an initial 1.5 million customer locations outside of AT&T's traditional 21-state wireline service presence, they said.
The companies said they would jointly own and govern Gigapower, but did not disclose additional deal terms.
The news comes as AT&T plans to expand its high-speed home internet service to newer areas in the country, in a bid to attract new subscribers.
Bloomberg News reported in October that AT&T had hired Morgan Stanley (NYSE:MS) to help bring in an infrastructure partner to the venture, which could be valued at $10 billion to $15 billion.
AT&T did not immediately respond to a Reuters request seeking more details on the deal, while BlackRock declined to comment.
AT&T plans to report consumer subscribers served through Gigapower in its operational results and said any impact on spending and free cash flow from the venture will be included in the forecast it plans to provide at its quarterly earnings next month.
BlackRock, which manages $313 billion in alternative investments that include private equity, real estate and credit, has signed the deal via a fund in its diversified infrastructure unit.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.