• Google has been dabbling in the US fibre broadband sector for 16 years
• Now its parent, Alphabet, has agreed to merge its Gfiber operation with Astound Broadband
• Infrastructure investor Stonepeak will be the majority owner of the combined venture 

Alphabet, the parent company of Google, has finally decided that building and running broadband access networks, something it has been doing since it formed Google Fiber in 2010, is a bit too far out of its comfort zone. It has agreed to merge  its high-speed access operations, now known as GFiber, with Astound Broadband to create “a leading independent fibre provider”. 

No financial details about the transaction, which is expected to be completed before the end of 2026, were shared.

The combined company will be majority owned by Stonepeak, the infrastructure investment firm that owns Astound, while Alphabet will retain an unspecified “significant” minority stake. The new entity will be run by the current GFiber management team, headed up by CEO Dinni Jain.

According to Stonepeak, the agreement “advances GFiber’s mission of redefining internet connectivity and represents a major step toward its goal of operational and financial independence. GFiber will have the external capital and strategic focus needed to accelerate its next phase of growth, expanding its customer-first approach and pioneering fibre technology across the country.”

Ruth Porat, president and chief investment officer at Alphabet and Google, stated: “Building on GFiber’s success as a leading independent US fibre internet provider, this is an exciting next phase of their growth. GFiber will now have the opportunity to provide better internet access to more communities across the country as they combine with Stonepeak’s Astound business, while continuing to provide their award-winning customer experience.”

GFiber’s Jain added: “GFiber has always been about pushing the boundaries of what’s possible for internet speed and service. This partnership with Astound and Stonepeak is the next step in our decade-long mission to redefine what customers can expect from their internet provider. It’s a strategic opportunity to scale our customer-focused approach to connect more households to a truly different type of internet service.” 

Astound, which offers broadband services in 11 states, has about 1 million customers and passes some 4 million premises with its access network, which comprises a mix of technologies (fibre, cable and wireless). 

GFiber offers its services in 19 states, having just launched in Nevada (Las Vegas) this week, but it’s unclear how many premises it passes or how many paying customers it has. 

- Ray Le Maistre, Editorial Director, TelecomTV