Oak Hill Capital, already an active investor in the broadband industry, plans to broaden its holdings with the formation of Omni Fiber.
Omni Fiber plans to bring 2 Gbps symmetrical FTTH service to small and mid-sized markets in the Midwest which, the company says, have historically been underserved. Initial projects will be in Ohio, Pennsylvania and Michigan.
Oak Hill is the majority investor in the new company, with a commitment of $250 million from Oak Hill Capital Partners VI, which it calls its flagship fund.
The new company will provide symmetrical 2 Gbps service without data caps or contracts for residential customers. Packages will include Wi-Fi and have a 30-day money back guarantee.
“We are thrilled to partner with Oak Hill and are excited to provide high-quality Internet access options to small and medium communities across the Midwest,” Omni Fiber CEO Darrick Zucco said in a press release. “Oak Hill’s investment will spur our growth to help bridge the digital divide and establish competitive choice by providing hundreds of thousands of households access to our future-proof, 100% fiber-optic network. We look forward to establishing and maintaining excellent service quality as we support our new customers and communities for years to come.”
Oak Hill is no stranger to broadband. Both MetroNet and Vexus were in its portfolio until their merger last month consolidated them into a single company.
Oak Hill also is in business with Race Communications, an FTTP operator that serves homes and businesses in California. In November 2020 Race said that it had entered into a definitive agreement to form a partnership with Oak Hill to accelerate the expansion of its fiber network. Race at that point was active in Sacramento, the Bay Area, the Sierras, the Central Valley, Los Angeles and San Diego.