Charlotte-based Brightspeed, a broadband and telecommunications provider, announced yesterday it has officially launched operations as a new company. That follows its close on a $7.5 billion deal for acquiring network assets in 20 states from Lumen Technologies’ (NYSE: LUMN) incumbent local exchange carrier (ILEC) business.
Brightspeed now operates as a separate operation owned by Apollo Global Management (NYSE: APO). With the completion of the acquisition and $2 billion from Apollo, Brightspeed has hired nearly 3,400 employees companywide. The company said it immediately expanded its customer service support team by more than 35%.
Brightspeed announced earlier this year it would be establishing its headquarters in Charlotte. It has leased 27,000 square feet in Vantage South End’s east tower for the headquarters.
“Brightspeed represents much more than just a new brand — it's a new beginning," said Bob Mudge, CEO of Brightspeed, in a statement. "Our immediate focus is on ensuring service continuity and a smooth transition for our customers and for the thousands of employees who support those customers every day.”
Brightspeed, which launched in late 2021, is now the fifth largest ILEC nationwide. The company’s 20-state service territory is available in more than 6.5 million homes across the Midwest, Southeast and parts of Pennsylvania and New Jersey.
Brightspeed provides internet and voice offerings to residential and small-business customers through its local fiber and copper networks. Enterprise and wholesale customers have access to Brightspeed’s high-speed connectivity, voice, networking and managed services to assist in more complex working environments.
“After more than a year of preparation, we are thrilled to officially begin serving customers as Brightspeed, and to start work to accelerate reliable connectivity for existing and new customers across our footprint," Mudge said. "We believe internet equals opportunity for households and businesses alike and are committed to making an impact on the rural-urban digital divide.”
The telecommunications provider also started the buildout of its fiber optics network. Brightspeed plans to complete over 1 million new fiber passings across 17 states during the initial construction phase through the end of 2023, the company said. With the $2 billion planned investment in its fiber network goals, Brightspeed aims to provide reliable internet service in more than 3 million underserved homes over the next five years.
"This is a milestone achievement for Brightspeed," said Aaron Sobel, private equity partner at Apollo. "Since the transaction was first announced a little over a year ago, the need for faster, more reliable connectivity in underserved communities has only continued to grow. Brightspeed has a once-in-a-generation opportunity to bring advanced fiber technology to millions of customers.”
Brightspeed will deliver speeds of up to 10 gigabits per second download and upload internet connections, the company said. The telecommunications company will also use Wi-Fi 6, the latest wireless networking standard for the best speed and performance.
By the end of 2022, Brightspeed plans to expand its fiber network in 13 of the 20 states where it acquired assets. The locations include the 200,000 existing fiber-enabled addresses that Brightspeed received at the close of the deal.
