New Report Exposes Poor Quality, Unsafe Work by AT&T Joint Venture Gigapower, as City of Phoenix Considers License Agreement with Private-Equity Backed Broadband Company

The report from the Communications Workers of America finds that AT&T and BlackRock's Gigapower does not directly employ any technicians, instead using a web of contractors that hire from temporary staffing agencies and don't provide adequate training

Contractors working on the Gigapower deployment have already caused $135k in damage to Mesa area

Phoenix, AZ - The Communications Workers of America (CWA) today published a new report, "The Gigapower Gamble: How AT&T and BlackRock are Undermining Broadband Quality, Safety and Jobs in Arizona," exposing Gigapower, a 50/50 joint venture between AT&T and investment giant BlackRock, for its harmful and dangerous business model of cutting corners and dismantling telecom careers in local communities. Gigapower is building a wholesale fiber network that was launched by AT&T and BlackRock in 2023.

The report finds that Gigapower harms public safety and damages public assets by failing to properly vet the dozens of contractors building its network, including in Mesa, Ariz., where Gigapower contractors have been responsible for at least 40 underground utility hits, including electric, gas, water/sewer, and telecommunications, accruing over $135k in damage in just 18 months. A number of Gigapower's subcontractors appear to be newly formed, unregistered, unlicensed, and with a minimal track record of construction or telecom infrastructure experience.

CWA closely tracked the Gigapower build-out in several markets and found evidence that Gigapower does not appear to employ any technicians or telecommunications workers building the network, despite the fact that the company is co-owned by AT&T, which has a robust and highly trained unionized workforce. Instead, Gigapower relies on contractors that do not provide workers adequate training and have track records of labor law and safety violations.

In Mesa, one of the first Gigapower markets announced by AT&T and BlackRock Executives where deployment began around January 2023, Gigapower selected telecom construction specialist Ansco & Associates as its prime contractor. In turn, Ansco further subcontracted the deployment infrastructure work to at least nineteen different contractors.

"AT&T's decision to partner with BlackRock and use a web of non-union contractors is undercutting wages and working conditions negotiated over decades by the company's union-represented workforce," said CWA President Claude Cummings, Jr. "Instead of continuing its proud legacy of raising standards in the telecom industry, AT&T is encouraging a race to the bottom by having Gigapower subcontract to the lowest bidders-often small, untested companies. The results so far have been troubling."

Gigapower Greed: Fiber Network Seeks Expansion in City of Phoenix

Coinciding with the report, the Maricopa Area Labor Federation (MALF) sent a letter to Phoenix Mayor Kate Gallego and members of the City Council today outlining concerns around city code changes that will allow companies like Gigapower to install fiber-optic cabling in the City's rights-of-way (ROW) without sufficient oversight and accountability. Those changes are expected to be voted on during a meeting of the City of Phoenix's Transportation, Infrastructure, and Planning Subcommittee on November 20. The subcommittee will establish the framework for licensing and the basis for long-term agreements with these companies, as well as outlining financial terms.

"We encourage the City of Phoenix to include transparency and training disclosures in the proposed city code changes to protect public infrastructure and the workers building out our critical broadband networks," the letter reads. "The multi-layered employment structures that companies like Gigapower and Google Fiber rely on can create accountability problems and dangerous conditions at worksites. Low-road subcontracting is a huge problem in the telecom industry, affecting work quality, worker safety, and public safety. Many other jurisdictions have already added contractor transparency disclosures to their city code."

"Fiber deployment requires dangerous and technical construction work in the public right of way, including excavation, drilling, and trenching, near critical infrastructure such as gas and electrical lines," said CWA District 7 Vice President Susie McAllister. "The City of Phoenix is currently considering changes to its city code to allow companies like Gigapower to deploy fiber in its public rights-of-way. Phoenix only needs to look next door to Gigapower's deployment in Mesa to understand why contractor transparency and requirements regarding contractor licensure, training, and safety should be included in the proposed city code changes to protect residents, workers, and city infrastructure."

"Communications Workers of America Locals 7019 and 7050 represent over 2,000 workers, including almost 500 telecom technicians who deploy and maintain our broadband infrastructure in Arizona," said Paul Castañeda, a fiber technician at Lumen Technologies for 25 years, former President of CWA Local 7019, and CWA District 7 Administrative Director. "We are highly trained to do this work and have fought for decades to make these good, family-sustaining jobs. We know our local infrastructure, like the gas lines and water mains. We need to know who is working in our rights-of-way and that they are licensed, registered, and properly trained. What happened in Mesa cannot happen in Phoenix. Failing to vet telecom infrastructure contractors can lead to dangerous outcomes for everyone, and it will ultimately cost our cities and towns both good jobs and taxpayer dollars to fix their mistakes."

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