Press Release: REPORT: AT&T, BlackRock Joint Venture Gigapower Brings Unlicensed Contractors, Project Delays to Arizona

PRESS RELEASE:

Despite assurances from executives, a new report from the Communications Workers of America finds Gigapower puts workers and communities at risk.

Phoenix, AZ – As Gigapower—the joint fiber venture launched by AT&T and private equity investment giant BlackRock in May 2023—expands its footprint across the country, a new report from the Communications Workers of America (CWA) details how its recent deployment in Chandler, Ariz., is marked by disturbances, delays, and dismissal.

The report, “Gigapower’s Chandler Conundrum,” documents the numerous operational challenges that correlate to poor contractor selection, substandard field supervision, and questionable project management practices, resulting in damage to critical utility infrastructure and work stoppages over public safety concerns. Gigapower is currently being sued by Tilson Technology Management, Gigapower’s former prime contractor in several states, for an alleged breach of contract. Tilson also recently filed for Chapter 11 bankruptcy, potentially jeopardizing Gigapower’s on-time Arizona market buildout, leaving hundreds of workers and dozens of small businesses in the lurch.

Findings from a CWA analysis of public records and field investigations include unlicensed, unregistered subcontractors performing work prohibited by City code, poor oversight and quality control, and other issues that may undermine high-quality fiber deployment workforce standards and endanger workers and the community. The report includes recommendations to policymakers and investors, who should be concerned with Gigapower’s ability to support good jobs, protect communities, and provide long-term value creation.

“I believe we are witnessing in real-time how Gigapower’s dangerous, corner-cutting business model endangers workers and dismantles local telecommunication careers in cities like Chandler, Arizona,” said Fernando Roman, CWA District 7 campaign lead and a broadband technician of 25 years. “This is why highly trained, union broadband technicians have continuously raised the alarm over this dangerous partnership. Policymakers and investors must take action to ensure Gigapower’s fiber deployments support good jobs and protect communities.”

This report builds on a 2024 CWA report exposing how Gigapower’s reliance on a web of inadequately trained, non-union contractors and substandard workforce oversight contributed to $135k in damage to the Mesa, Ariz., area, impacting work quality, worker safety, and public safety. It shows that issues at Gigapower are not isolated to just one project but may be a result of the company’s structure and business model.

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This post originally appeared on cwa-union.org.