Gigapower has signed its second internet service provider (ISP) customer: DojoNetworks, an ISP focused on multi-family properties, also known as multi-dwelling units (MDUs). Gigapower is a joint venture (JV) of AT&T and investment firm BlackRock that is deploying fiber broadband in areas outside AT&T’s traditional local service footprint.
AT&T will be the anchor tenant on the Gigapower network, but the JV also is making the network available for use by other providers on an open access basis.
The only other open access customer that Gigapower has announced is Flume, an ISP that, like Dojo, also focuses on MDUs.
Asked about the markets in which Dojo will buy connectivity from Gigapower, a Gigapower spokesperson said DojoNetworks plans to target Gigapower markets broadly.
“Gigapower’s goal is to extend these services to as many communities as possible where they align with our open-access network model and deployment strategy.”
According to a press release, Dojo offers service in 33 states.
The Gigapower spokesperson offered examples of markets in which they could offer service on an open access basis: Alabama (Baldwin), Arizona (Chandler, Gilbert, Mesa, Maricopa County), Florida (Apopka, Bay Hill, Buenaventura Lakes, Casselberry, Fairview Shores, Fern Park, Forest City, Horizon West, Kissimmee, Lake Butler, Lake County, Maitland, Oakland, Ocoee, Orange County, Osceola County, Paradise Heights, Seminole County, South Apopka, St. Cloud, Windemere, Winter Garden, Winter Park, Altamonte Springs, Eatonville, Groveland, Mascotte, Cinco Bayou, Crestview, Destin, Fort Walton Beach, Freeport, Miramar Beach, Niceville, Ocean City, Okaloosa County, Walton County, Wright, Mary Esther), Nevada (Las Vegas), New Mexico (Albuquerqe), North Carolina/South Carolina (Charlotte, Indian Trail, Stallings, Union County, Rock Hill, Weddington, Wesley Chapel, York County, Lesslie), and Pennsylvania (Dunmore, Blakely, Dickson City, Luzerne County, Nanticoke, Olyphant, Scranton, Sheatown, Sugar Notch, Throop, Wanamie, Warrior Run).
Open access as a sideline
The Gigapower JV was launched in 2023. While some open access network operators only offer service on a wholesale basis, that’s not exactly true for Gigapower. Any provider buying service on the Gigapower network will be competing with AT&T — a reality that may have made some providers wary of using Gigapower.
It’s interesting that both Dojo and Flume not only focus on the MDU market. Both companies also offer managed Wi-Fi to the properties they serve and may view that as a means of differentiating their offerings from competitors.
It’s unclear how much revenue AT&T and BlackRock expected to get from open-access customers when they formulated their Gigapower business plan. But it’s likely that the business plan’s success relies primarily on AT&T’s retail revenues.
Assuming that’s true, the Gigapower JV would appear to have been a smart move for AT&T, even if the network is not seeing tremendous success on the open access side. The network expands the areas where AT&T can offer bundled internet and mobile service, boosting revenues and lowering churn for both offerings.
The combination of mobile and internet is today’s “killer bundle” — a title it took from the outmoded triple-play of voice, video and internet. And that — not the potential for open access revenues — undoubtedly was the prime driver behind AT&T’s decision to enter the JV with BlackRock.
