Gigapower, the open-access network operator owned by AT&T and BlackRock, said today that it has reached an agreement with Flume to use the network in Mesa, Arizona.
Flume is a service provider focused on multi-dwelling units that relies primarily on other providers’ networks for connectivity. The deal with Gigapower is in keeping with that strategy.
“Through this relationship, Flume will deliver managed Wi-Fi internet services to residents in select apartment buildings and condominium communities,” Flume and Gigapower said in a press release.
AT&T already uses the Gigapower network to offer service to end users in Mesa and other markets, Gigapower Chief Revenue Officer Jeff Seidenfaden confirmed in an email to Telecompetitor.
The AT&T BlackRock JV
AT&T and BlackRock formed the Gigapower joint venture in 2023. The strategy was to build fiber broadband networks outside AT&T’s traditional local service footprint. AT&T would be the anchor tenant on the networks, but the same networks would also be offered to other providers on a wholesale basis.
The Mesa network was one of the first that Gigapower built. Since then, the JV has announced other markets as well.
Asked whether Gigapower had agreements with any service providers other than AT&T and Flume to use the open access network, Seidenfaden said, “We will continue to announce our ISP relationships at the right time. We are in active conversations with multiple ISPs to be part of our network.”
Some open access network operators refrain from offering service directly to end users. AT&T’s retail presence may be causing some potential Gigapower customers to avoid the network or to at least take a cautious approach toward it. Nevertheless, the Gigapower strategy makes considerable business sense for AT&T. The company has the potential to gain additional revenue through the open access approach. And by working through a JV, AT&T minimizes the amount of capital it must invest in fiber buildouts.
