Minnesota is once again directly experiencing big changes in the tech sector. In addition to data center construction (and controversy), the state has become a major-league playing field for fiber optic industry consolidation.
In February, AT&T made itself a major fiber player in the Twin Cities metro by closing on its acquisition of Quantum Fiber, the consumer fiber business operated by Louisiana-based Lumen Technologies. (Lumen also is the parent company of telecom provider CenturyLink, which continues to operate.)
AT&T acquired Quantum Fiber via Gigapower, a joint venture it established in 2022 with New York-based BlackRock, the world’s largest institutional asset manager. (BlackRock’s Global Infrastructure Partners subsidiary acquired Duluth-based electric utility Allete last October.)
This deal follows on the heels of two other fiber company acquisitions. In January, Verizon purchased Dallas-based Frontier Communications, which offers fiber connectivity in the Twin Cities region and elsewhere in the state. And last September, Indiana-based Metronet acquired Minnetonka-based U.S. Internet (USI), which provided high-speed internet to about 140,000 commercial and residential customers in and around the Twin Cities. At the time of its USI purchase, Metronet also delivered fiber connectivity to parts of the metro, along with customers in Owatonna, Faribault, and Rochester. Like Gigapower, Metronet is a joint venture between a telecom and a large investment firm—in this case, T-Mobile and KKR, respectively.
It’s happening all over the state…
Indeed, parts of Greater Minnesota are further along in developing high-speed fiber networks. “I have a number of members that have completed fiber-to-the-premises installations already,” says Brent Christensen, president and CEO of the Minnesota Telecom Alliance, a Madelia-headquartered trade association that represents 40 Minnesota telecommunications companies, most of which are smaller providers in Greater Minnesota. “And the vast majority are either done or just about done building out fiber.”
It’s not only small-town telecoms that are installing fiber. This month, the Bois Forte Band of Ojibwe in northern Minnesota began construction on a fiber optic expansion project intended to connect more than 2,000 Tribal residents. (Also in the Great North: Iowa-based ImOn Communications recently announced plans to build a fiber network in Duluth. This would be ImOn’s first foray into Minnesota.)