Brightspeed is the new brand name for the incumbent local exchange carrier (ILEC) assets and associated operations of Lumen Technologies (NYSE: LUMN) that funds managed by Apollo (NYSE: APO) have agreed to purchase.
Brightspeed will operate in 20 states "initially," with the company planning to spend more than $2 billion on fiber network deployments.
The company has established headquarters in Charlotte, NC, under the new leadership of CEO Bob Mudge, COO Tom Maguire, and Chief Administration Officer Chris Creager, all formerly of Verizon.
Other executives include Chief Legal Officer Steve Tugentman, Chief Human Resources Officer Colon McLean, and Chief Technology Officer Ashok Kumar.
Brightspeed will operate primarily in the U.S. Midwest and Southeast, as well as in parts of Pennsylvania and New Jersey.
The fiber to the premises buildout is expected to pass up to 3 million homes and businesses over the next five years, with an emphasis on suburban and rural locations.
"This is an exciting and tangible milestone for our company. As we take the first steps in our journey and develop our infrastructure investment plans to provide consumers, local businesses, and enterprise customers with the fastest, most reliable connections they need to accomplish what's most important to them, we now have a brand identity that uniquely reflects our product attributes and customer experience," said Mudge. "We have an incredibly talented team of network builders and lifelong customer advocates who are eager to accelerate the upgrade to fiber-optic technologies in parts of the country that have been historically under-invested."
"Technology is the key to our digital future, and we believe all customers should have access to the best service possible, whether they connect to our legacy copper network or our new fiber platform," added Maguire.
"We are thrilled to introduce Brightspeed and to continue building our team with innovators who share a commitment to outstanding customer service," said Creager. "We know what it takes to drive industry change, and while the investment and transformation we are planning are bold, we are confident we will have the right team members, partners, and resources to bring fast, reliable, and user-friendly internet to the communities that need it most."
Of course, the acquisition of the current assets from Lumen has to be completed first. Apollo expects to reach this milestone in the second half of 2022, subject to customary closing conditions, including regulatory approvals.