(MENAFN- Trend News Agency) Wireless carrier AT&T Inc and fund manager BlackRock Inc are
forming a joint venture to operate a fiber-optic platform in the
United States, trend reports with reference to reuters .
The venture, Gigapower LLC, plans to deploy its network to an
initial 1.5 million customer locations outside of AT&T's
traditional 21-state wireline service presence, they said.
The companies said they would jointly own and govern Gigapower,
but did not disclose additional deal terms.
The news comes as AT&T plans to expand its high-speed home
internet service to newer areas in the country, in a bid to attract
new subscribers.
Bloomberg News reported in October that AT&T had hired
Morgan Stanley to help bring in an infrastructure partner to the
venture, which could be valued at $10 billion to $15 billion.
AT&T did not immediately respond to a Reuters request
seeking more details on the deal, while BlackRock declined to
comment.
AT&T plans to report consumer subscribers served through
Gigapower in its operational results and said any impact on
spending and free cash flow from the venture will be included in
the forecast it plans to provide at its quarterly earnings next
month.
BlackRock, which manages $313 billion in alternative investments
that include private equity, real estate and credit, has signed the
deal via a fund in its diversified infrastructure unit.
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