Brightspeed Raises $3.7 Billion for Fiber Optic Construction

Fierce Network reports that Brightspeed, which acquired Lumen Technologies’ copper assets in 20 markets, has received $3.7 billion in new financing for fiber optic construction. This financing comes from a consortium of bankers and other investors led by Brightspeed’s parent company Apollo Global Management. Apollo paid $7.5 billion to Brightspeed in 2022.

Tom Maguire, CEO of Brightspeed, said, “The people who financed the initial Go around are back. I think it’s a good sign. Because they still believe in what we’re doing.”

The Fund

In addition, Brightspeed is also burdened with $1.1 billion in debt. However, the company announced today that it has been cleared by investors.

The company previously received a $500 million investment from Abu Dhabi company Mubadala. In addition to billions of dollars in private funding, it also received $213 million in government grants within its network coverage area.

Regarding Brightspeed’s new financing, Jonathan Spalter, CEO of USTelecom Association, told Fierce, “This is not only a true affirmation of Brightspeed and its construction plan, but also an affirmation of the overall positive atmosphere of broadband. The reason is that many people in the financial industry do see a path to growth and success.”

Fiber Optic Construction

Brightspeed has acquired Lumen Technologies’ business in 20 states. Its network currently covers 6.5 million households and businesses. Among them, 1.4 million households have excessively laid fiber optic cables.

At present, the company is deploying fiber optic on copper wire networks in 17 states and plans to eventually build in all 20 states. What’s more, its goal is to cover 1.75 million locations with fiber optic coverage by the end of 2024 and 4 million locations after several years of construction.

Brightspeed can currently add up to 90000 new households per month. Also, the company hopes to maintain this speed.

At present, the construction of fiber optic cables in the United States is accelerating. And $42.5 billion in government funding is flowing to states through the BEAD project, injecting vitality into the fiber optic industry. Texas received the highest BEAD grant, exceeding $3.3 billion, followed by California at $1.9 billion. 19 states have received over $1 billion in funding.