AT&T, BlackRock Alternatives to form commercial fiber platform joint venture

AT&T (T) and BlackRock Alternatives (BLK), through a fund managed by its Diversified Infrastructure business, have signed a definitive agreement to form a joint venture that will operate a commercial fiber platform. The newly formed joint venture, Gigapower, LLC,expects to provide a best-in-class fiber network to internet service providers and other businesses across the United States. Gigapower will serve customers outside of AT&T’s traditional 21-state wireline service footprint with fiber access technologies in innovative and efficient ways. And AT&T will leverage its nationwide wireless sales capabilities to sell fiber to customers in Gigapower territories. Following close, AT&T and BlackRock will jointly own and govern Gigapower. AT&T does not expect to consolidate Gigapower’s financial results but does expect to report its consumer subscribers served through Gigapower in Consumer Wireline business unit operational results. Any impacts to AT&T’s 2023 capital investment or free cash flow forecast will be included in AT&T’s 2023 financial guidance when it announces fourth-quarter 2022 results in January 2023. This transaction is subject to customary closing conditions, including regulatory approvals. Additional terms were not disclosed.