BlackRock’s Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPP Investments) have partnered with telecommunications firm AT&T to launch a wholesale fibre joint venture in the US.
The venture will combine Forged Fiber 37, the network operations AT&T recently acquired from Lumen Technologies, with Gigapower, AT&T’s existing wholesale fibre joint venture with GIP.
As part of the deal, AT&T will hold a 50% stake in the combined platform, with GIP and CPP Investments owning the remaining 50% in the venture which will support AT&T’s target of reaching more than 60m fibre locations across 16 US states by 2030.
John Stankey, chairman and CEO of AT&T, said: “Fibre is the definitive connectivity technology for an AI-driven world. Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fibre connectivity to more Americans.
“By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fibre, broaden availability of our award-winning services and grow our leadership in converged fibre and 5G connectivity.”
Mark Florian, head of GIP mid-markets funds, said: “Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services. By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalisation of the global economy.”
James Bryce, managing director and head of infrastructure at CPP Investments, said: “Demand for reliable, high-capacity connectivity continues to grow, making fibre infrastructure an increasingly important part of the digital economy.
“By combining AT&T’s extensive fibre expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the US and to generate long-term investment value for the CPP Fund.”
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