AT&T/Blackrock Fiber JV Boosts Carrier's Influence, Gives Cable More Competition: Analysts

Wall Street is mixed on how much a threat to cable comes from AT&T's joint venture with Blackrock to create an open access commercial fiber platform that would run outside AT&T's 21-state wireline footprint. The JV "poses a competitive challenge to cable providers and regional fiber providers, whose broadband reaches are geographically restricted, though those carriers could possibly become tenants on the open access Gigapower platform to extend their own footprints," GlobalData analyst Tammy Power said Friday. New Street Research said in a note to investors the effects on cable are likely negligible, and small on other telcos, "though this will depend on where exactly AT&T and Blackrock plan to build." Announcing the JV Friday, AT&T said it will use its nationwide wireless sales network to sell fiber to customers in Gigapower territories. BlackRock said AT&T -- along with being part owner and operator -- will be a wholesale tenant of the network. AT&T said Gigapower's initial deployment will be to 15 million customer locations nationwide using a commercial open access platform and will be in addition to AT&T's goal of hitting more than 30 million fiber locations by the end of 2025 in its 21-state wireline footprint. GlobalData's Parker said the open access network extends the carrier's influence without it assuming all the risk by itself. Gigapower also lets AT&T market fixed/mobile service bundles outside that 21-state footprint. And it will give AT&T more ammunition to compete against fixed wireless access services, she said.