Benton Institute for Broadband & Society - Private equity

Wireless Telecommunications

Author:

Joan Engebretson

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Tue, 04/16/2024

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Daily Digest 4/15/2024

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Mon, 04/15/2024

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Wireless Internet

Public and private fiber operators tap asset backed security

zwalker@benton.org — Tue, 02 Apr 2024 18:19:26 +0000

One tactic that both private and public fiber companies are using to raise capital is to tap asset backed security (ABS), according to the analysts at TD Cowen. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital, such as corporate bonds. For example, the public company Frontier inked a $2.1 billion ABS deal last August, making it the first public broadband company in the US to secure funds backed by fiber-to-the-home (FTTH) assets. While Frontier is a public company, ABS is also having an impact among private companies. For instance, Metronet has executed four ABS funding raises, ALLO executed an ABS raise in 2023, and now Ziply is exploring a $1.9 billion ABS raise. Cowen wrote, “The FTTH ABS frenzy has only improved access to capital for private operators.”

Benton Content:

https://www.fiercetelecom.com/broadband/public-and-private-fiber-operators-tap-a…

Teaser:

Asset backed security (ABS) is having a positive impact on fiber builds

Source:

National Telecommunications and Information Administration

Author:

Linda Hardesty

Send date:

Wed, 04/03/2024

Daily Digest:

Daily Digest 4/2/2024

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Tue, 04/02/2024

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Reporting

Federal Agency

Federal Broadband Programs

Broadband Equity, Access, and Deployment (BEAD) Program

Infrastructure Investment and Jobs Act

The future of broadband mergers and acquisitions

zwalker@benton.org — Fri, 22 Mar 2024 19:41:34 +0000

You can’t go far in the broadband industry without hearing about some internet service provider getting acquired or an investment from a private equity company. Brightspeed, Consolidated Communications and Wire 3 are a few recent examples. Ropes & Gray, a law firm that’s advised private equity firms in investments in fiber companies, estimates digital infrastructure mergers and acquisitions (M&A) activity will pick up in the next year and will likely grow even further with the increased need for applications like generative AI (GenAI). The digital infrastructure space isn’t immune to the macroeconomic factors that are impacting the broader M&A market, Ropes & Gray attorney Taylor Hart pointed out, such as interest rates and geopolitical issues. But he thinks digital infrastructure “is much more insulated” in that there’s lots of interest and growth.

Benton Content:

https://www.fiercetelecom.com/broadband/heres-what-expect-broadband-ma

Teaser:

Law firm Ropes & Gray expects digital infrastructure M&A activity to pick up in the next year

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Author:

https://www.fiercetelecom.com/broadband/meridiam-rides-fiber-train-alabama-230m-…

Send date:

Mon, 03/25/2024

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Daily Digest 3/22/2024

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Fri, 03/22/2024

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Meridiam rides fiber train in Alabama with $230 million investment

zwalker@benton.org — Mon, 04 Mar 2024 22:21:21 +0000

Alabama is getting a major open access fiber boost via private investment. Meridiam, an infrastructure investment firm, is kicking off a $230 million project to build an open access network that will reach 17 Alabama cities, including Selma and Demopolis. It aims to eventually cover 53,000 homes and businesses in partnership with Yellowhammer Networks, a fiber-to-the-premises network developer that’s financed by Meridiam. This is far from Meridiam’s first time riding in the broadband infrastructure rodeo. According to Omri Gainsburg, COO of Meridiam in the Americas, the firm’s current fiber portfolio includes projects with more than 16,000 miles of fiber infrastructure, passing nearly 1.5 million premises.

Benton Content:

Teaser:

Meridiam is investing $230 million to build an open access fiber network in Alabama

Source:

Author:

https://www.fiercetelecom.com/broadband/gigapower-ceo-says-open-access-network-p…

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Tue, 03/05/2024

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Daily Digest 3/4/2024

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Mon, 03/04/2024

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Gigapower CEO says open access network is ‘picking up speed’ as joint venture expands to NM

zwalker@benton.org — Mon, 12 Feb 2024 20:33:16 +0000

Just over a year has passed since AT&T and asset management firm BlackRock formed Gigapower, a joint venture (JV) that’s providing a wholesale open access fiber network to AT&T’s out-of-footprint territory. Gigapower announced plans to build in Albuquerque, New Mexico. CEO Bill Hogg said the JV is currently constructing networks in five states; Alabama, Arizona, Florida, Nevada and Pennsylvania. AT&T, which is serving as Gigapower’s anchor tenant, is offering service on the network in Arizona, Florida and Nevada. Hogg told Fierce Gigapower is still planning to reach 1.5 million initial passings over a three-year period but declined to share the JV’s current passings. Aside from Albuquerque, Gigapower has publicly announced markets in Arizona (Chandler, Gilbert and Mesa), Pennsylvania (Scranton, Wilkes-Barre) and Las Vegas, Nevada.

Benton Content:

Teaser:

AT&T is so far the only tenant on Gigapower's network, but the CEO said the company is in “detailed discussions with several other ISPs"

Source:

Author:

https://www.telecompetitor.com/gigapower-ceo-sees-an-exciting-six-months-ahead-r…

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Tue, 02/13/2024

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Daily Digest 2/12/2024

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Mon, 02/12/2024

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Gigapower CEO Sees an Exciting Six Months Ahead: Remember Those 1.5M Locations They Promised?

zwalker@benton.org — Wed, 07 Feb 2024 17:57:20 +0000

It’s been over a year since AT&T and investment firm Blackrock established their Gigapower joint venture to build open access fiber networks and set a goal of reaching 1.5 million locations within 18 months. Until now, the company has made relatively few moves on that front. But that’s set to change soon, according to Gigapower CEO Bill Hogg. The company is now offering service in four of six markets that were previously announced, including two in Florida, as well as Las Vegas and the Mesa, Arizona area. Gigapower announced its seventh market—Albuquerque—where Hogg expects to see customers connected before the end of the year. Hogg noted that the company's strategy is "to be the first fiber provider; it usually puts us up against cable as the next closest competitor.” And with symmetrical speeds up to 5 Gigabits per second, Hogg said Gigapower is well positioned to compete against cable.

Benton Content:

Teaser:

The company is now offering service in four markets, with more to come soon

Source:

https://www.fiercetelecom.com/telecom/consolidated-shareholders-approve-private-…

Author:

Joan Engebretson

Send date:

Thu, 02/08/2024

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Daily Digest 2/7/2024

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Wed, 02/07/2024

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Consolidated shareholders approve private equity acquisition

zwalker@benton.org — Thu, 01 Feb 2024 22:52:15 +0000

Consolidated Communications is one step closer to taking its company private, as shareholders approved the proposed $3.1 billion acquisition by Searchlight Capital Partners and British Columbia Investment Management Corporation (BCI). Approximately 75% of Consolidated’s shareholders voted yes on the private equity deal, which is expected to close by the first quarter of 2025. Robert Currey, chairman of Consolidated’s board, said the transaction will provide “financial flexibility and access to capital” that will help the operator expand broadband across the rural US. Consolidated has said that without private equity backing it will be forced to slow the pace of its fiber build, from more than 300,000 annual passings to roughly 45,000-75,000 passings per year. The company also warned shareholders if the Searchlight/BCI acquisition isn’t approved, Consolidated expects to complete its fiber build by 2029 – three years after its original target.

Benton Content:

https://www.telecompetitor.com/shareholders-approve-consolidated-communications-…

Teaser:

Consolidated has said that without private equity backing, it will be forced to slow the pace of its fiber build

Source:

Author:

https://www.telecompetitor.com/private-equity-firm-sees-potential-in-mobile-home…

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Fri, 02/02/2024

Daily Digest:

Daily Digest 2/1/2024

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Thu, 02/01/2024

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Private Equity Firm M/C Partners Sees Potential in Mobile Home Broadband Investment

zwalker@benton.org — Thu, 18 Jan 2024 21:05:40 +0000

AccessParks—which provides broadband connectivity to RV parks, national and state parks, and manufactured housing communities—received additional funding from M/C Partners, a private equity firm focused on the digital infrastructure and technology services sectors. The amount of the investment was not disclosed, but was described as “significant.” AccessParks’ campground division provides outdoor connectivity using fiber-optic, microwave, 5G, and Wi-Fi services. The manufactured housing division uses similar technologies to bring gigabit service to residents of manufactured housing communities. AccessParks expects to use the money for accelerated growth across the company’s business lines and capital for strategic acquisitions.

Benton Content:

Teaser:

M/C Partners invests in broadband connectivity for mobile homes

Source:

https://www.telecompetitor.com/novos-fiber-doesnt-want-you-to-call-its-internet-…

Author:

Phil Britt

Send date:

Fri, 01/19/2024

Daily Digest:

Daily Digest 1/18/2024

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Publish Date:

Thu, 01/18/2024

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NOVOS Fiber Doesn’t Want You to Call Its Internet Service a Utility

zwalker@benton.org — Mon, 08 Jan 2024 16:46:04 +0000

NOVOS FiBER publicized itself with an announcement that Arlington (TX)will soon have a new broadband provider. NOVOS FiBER was founded in 2022, funded by InLight Capital, a private investment firm based in Sugar Land (TX). NOVOS Fiber is entering both the retail and wholesale markets and plans to serve a “significant number” of homes over the next two years. First focusing on Texas, NOVOS will eventually expand beyond state lines. Founder and CEO Andrew Snead said he and the company have a strong conviction to go against the grain of the “internet service is primarily a utility” mentality. “You need to think about the end-to-end experience which pure utility players don’t tend to do,” said Snead. “You can alienate your customer base, because they look at internet service as a technology investment versus utilities like water and electricity. If we completely commoditize internet service without regard for the entire experience, we’re missing how customers view internet and creating frustration.”

Benton Content:

Teaser:

NOVOS plans to emphasize the experience as much as the internet technology itself

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