What's Happening?
DojoNetworks, a provider of managed broadband and video services for multiple-dwelling units (MDUs), has entered into an agreement with Gigapower to connect to its open access network. Gigapower, a joint venture between AT&T and BlackRock, is expanding its network to approximately 1.5 million locations outside AT&T's traditional wireline service areas. This partnership follows a similar deal with Flume, another service provider, and marks a significant step in Gigapower's strategy to enhance its service offerings. DojoNetworks, which has been operational for about 25 years, initially focused on the Pennsylvania market but has been pursuing a national strategy since 2020. The company currently serves around 37,000 units and plans to expand to an additional
25,000 units in the next year. The partnership with Gigapower is expected to improve DojoNetworks' economic model by allowing it to target smaller properties, potentially down to 16 units, due to the fiber delivery provided by Gigapower.
Why It's Important?
This partnership is significant as it represents a strategic expansion of Gigapower's open access network, which is crucial for AT&T's broader fiber ambitions. By collaborating with DojoNetworks, Gigapower can enhance its service reach and improve the economics of fiber deployment, making it feasible to serve smaller properties. This move is part of AT&T's goal to extend fiber to 60 million locations by 2030, which includes leveraging third-party fiber providers and recent acquisitions. The expansion of fiber networks is critical for improving internet access and connectivity, particularly in underserved areas, and can have a substantial impact on local economies and communities by providing better access to digital services.
What's Next?
Following the agreement, DojoNetworks will begin pursuing contracts within Gigapower's service areas. The company aims to expand its service offerings to additional properties, leveraging the improved economics from the partnership. As Gigapower continues to build its network, it is likely to seek further partnerships with other service providers to enhance its reach and service capabilities. This expansion could lead to increased competition in the broadband market, potentially driving down prices and improving service quality for consumers.
