Exclusive Series: AT&T, T-Mobile Bet Big on Open Access
Once staunch opponents of open access, Tier 1 ISPs are now entering a space traditionally dominated by municipalities.
Jericho Casper
Editor's note: This is the third of a four-part series on open access networks in the lead-up to Digital Infrastructure Investment on Thursday, September 19: 'All-in' on Open Access.
WASHINGTON, September 17, 2024 – Once staunch opponents of open access, Tier 1 Internet Service Providers are now entering a space that, in the United States, has been pioneered by local governments two decades ago.
In the last year-and-a-half, AT&T has embraced open access through its Gigapower joint venture with BlackRock, the world’s largest money manager with $10 trillion assets under management.
T-Mobile had also dipped its toe in the space, and is now seeking to get all-in through a proposed $950 million joint venture in April with Swedish investment firm EQT. This is as part of the carrier’s proposed acquisition of fiber operator Lumos.
The T-Mobile-Lumos deal is currently under review by the Federal Communications Commission.
Officials at Gigapower, which is a separate legal entity from AT&T, said in June that one aspect of the shift was driven by the venture’s growing interest in obtaining federal funds, according to CEO Bill Hogg.
Speaking at a Broadband Breakfast Live Online event in September 2023, Hogg also pitched Gigapower’s ability to build open access infrastructure with grants for state broadband offices under the Commerce Department’s Broadband Equity, Access and Deployment Program. The venture is also designed to allow its partners to reduce capital expenditures and more quickly enter new markets.
Just last week, AT&T’s John Stankey, CEO of one of the telecom industry’s largest players, reaffirmed the company’s goal to be the “first and biggest” in the open access sector as a way to aggressively expand its fiber footprint.
New motivations for Tier 1 providers
This month, AT&T announced wholesale agreements with fiber broadband providers such as Boldyn, PRIME, and Ubiquity in key regions, including Texas military bases, Florida, and Minnesota.
Exclusive Broadband Breakfast Series on Open Access Networks:
Part 1: Overseas Strength in Open Access
Part 2: Municipal Broadband and Open Access
Part 3: AT&T, T-Mobile Bet Big on Open Access
Part 4: Big Money Moves Forward with Open Access
