Private equity

Brookfield Infrastructure Partners has struck a deal for internet-service provider Hotwire Communications, making a multibillion-dollar bet on the growing industry for next-generation broadband infrastructure. The deal is expected to value Hotwire at around $7 billion, including debt. An announcement is expected soon. Hotwire is a closely held internet service provider that operates in commercial settings and residential communities, according to its website.

The Milken Institute Global Conference gathered top players in business, technology, and politics at a chaotic moment for the global business ecosystem. POLITICO’s Tyler Katzenberger cornered some big names in industry and government to ask them the question on everyone’s mind: What’s the biggest threat to the future for tech?

Just when we were wondering what’s been going on with Dish, apparently it went and sold its fiber business. Mereo Networks, a bulk broadband provider, announced it acquired Dish’s fiber unit. Dish Fiber is a bulk fiber business launched in 2019 aimed at multi-family communities. According to Mereo, Dish’s fiber biz serves over 25,000 residential units across 33 states.

Immediately after Verizon announced that it was buying Frontier Communications, people started saying “the race for fiber assets is on!”  And perhaps they are right because AT&T and BlackRock announced they want to grow their Gigapower fiber joint venture more than originally planned. AT&T also announced four new partnerships to expand its fiber network faster. AT&T said it selected each company because they provide opportunities to expand AT&T Fiber to new service areas without existing fiber options.

T-Mobile is sneaking into the cable industry’s backyard. The second-biggest cellphone carrier by subscribers has pieced together at least five partnerships with fiber-optic internet providers that could serve millions of customers in the coming years.

T Mobile said it entered into a definitive agreement to establish a joint venture (JV) with the investment firm KKR to acquire Metronet as the company aims to increase its fiber solution offer to U.S. consumers. The wireless broadband provider expects to invest around $4.9 billion to acquire a 50% equity stake in the joint venture and 100% of Metronet’s residential fiber retail operations and customers. The JV will also acquire Oak Hill Capital’s existing stake.

One in three Americans doesn’t have internet at speeds fast enough to use Zoom. Despite being an essential utility, building out the nation’s internet infrastructure has been largely left to market forces with highly uneven results: 40 million Americans are still waiting to be connected. Large traditional internet service providers have not and will not invest in communities where the economics don’t fit their business models.

The prosecco corks were no doubt popping at Telecom Italia’s (TIM) headquarters in Rome after the operator’s relieved CEO was able to announce the completion of a long-gestated plan to sell off its fixed-line grid to the Optics BidCo consortium controlled by investment firm KKR. The sale of NetCo for up to €22 billion (U.S. $23.6 billion) also allows TIM to reduce its net financial debt by about $13.8 billion, from an adjusted net financial debt of €26.6 billion at March 31, 2024.

LiveOak Fiber, which operates fiber broadband networks in Georgia and Florida, has secured $250 million from J.P. Morgan to fund its fiber network expansion in the southeastern United States. The quarter billion investment will be used to expand LiveOak’s 100% fiber broadband network in Florida, Georgia, and beyond. Founded in 2022 and headquartered in Brunswick, Georgia, LiveOak Fiber has grown quickly.

AT&T CEO John Stankey touted open access fiber networks, giving several examples of how they could be structured to benefit AT&T. AT&T is partnering with BlackRock for an open access joint venture called Gigapower. The JV is building networks outside of AT&T’s footprint. It already has fiber builds in progress in parts of Arizona, Florida, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania and South Carolina.