Ownership

Federal Communications Commission Chairwoman Jessica Rosenworcel announced that the items below are tentatively on the agenda for the May Open FCC  Meeting scheduled for Thursday, May 23, 2024:

When the internet was new, people talked a lot about long-haul networks in the United States. That’s because a lot of the early data centers were on the East and West coasts, and they needed to be connected. These days long-haul networks are largely overshadowed by last mile builds. There’s a lot of existing long-haul and middle-mile fiber that can be patched together to create the desired routes for any business.

Slowing growth in the market for telecommunications services appears to be putting additional pressure on network operators in the US. Mergers and acquisitions are on the rise. Layoffs appear to be accelerating.

The Financial Times has struck a deal with OpenAI to train artificial intelligence models on the publisher’s archived content, in the latest agreement between the Microsoft-backed start-up and a global news publisher. Under the terms of the deal, the FT will license its material to the ChatGPT maker to help develop generative AI technology that can create text, images and code indistinguishable from human creations. The agreement also allows ChatGPT to respond to questions with short summaries from FT articles, with links back to FT.com.

T-Mobile and EQT, a purpose-driven global investment organization, have entered into a joint venture (JV) with EQT’s Infrastructure VI fund (EQT) that will acquire fiber-to-the-home platform Lumos from EQT’s predecessor fund EQT Infrastructure III. The J

Grain Management announced that it has agreed to acquire a majority interest in 123NET, a premier fiber internet, colocation, and business voice services provider based in Michigan. 123NET has been at the forefront of Michigan connectivity since its founding in 1995. The company has built an expansive 3,100 route mile network including long haul and dense metro fiber network in Michigan’s largest cities. 123NET’s network is further enhanced by Michigan’s largest carrier hotel and its high-density data centers in metro Detroit and Grand Rapids.

For decades, the United States has fashioned itself the champion of an open internet, arguing that the web should be largely unregulated and that digital data should flow around the globe unhindered by borders. The government has argued against internet censorship abroad and even funded software that lets people in autocratic states get around online content restrictions.

Alabama-based Dragonfly Internet was created in 2023 when ITC Holding Company bought a local fixed wireless provider and opted to change the name. Since then, Dragonfly has been upgrading the fixed wireless equipment that the previous company had deployed and expanding to unserved and underserved areas using a mixture of fixed wireless and fiber. “Our preference is to use fiber where we can,” CEO David Hartin said. “But there will be communities where fixed wireless will make a lot of sense to do.

One tactic that both private and public fiber companies are using to raise capital is to tap asset backed security (ABS), according to the analysts at TD Cowen. ABS is a type of financial investment that uses income-generating assets as collateral and is an alternative to other ways of raising capital, such as corporate bonds.

It’s a no-brainer that fiber providers need some way to get the money they need for their passings targets, whether that’s tapping into government grants or private equity support. However, Frontier Communications is pursuing a third option. In August 2023, Frontier inked a $2.1 billion asset-backed securitization (ABS) deal – the first public company in the U.S.