123NET lands $86M federal grant to expand Michigan fiber network
What's the deal? 123NETDealroom has a profile for this one. Try Dealroom →, a Michigan-based fiber internet, colocation, and voice provider, has been awarded about $86 million through the federal Broadband Equity, Access and Deployment (BEAD) program. The grant, signed in October, will fund fiber installation across underserved communities in the state.
Why now? The award is part of Michigan's broader broadband buildout. The state is deploying roughly $920 million in federal grants, paired with $550 million in private matching funds, toward a $1.5 billion investment to connect nearly 200,000 homes, businesses, and institutions.
What's the endgame? 123NET plans to build 1,700 miles of fiber across 12 counties, including Allegan, Kent, Oakland, and Washtenaw. The funding targets 17,000 BEAD-eligible addresses, part of a wider network expansion reaching 49,300 addresses. Projects are scheduled to begin in early 2027.
The company says owning and operating its entire network helps it avoid obstacles that third-party providers face. It currently runs Michigan's largest fiber network and earlier this year completed an expansion in Allegan County through a state ROBIN grant.
"The BEAD program and the funding it provides will create long-term, sustainable infrastructure for the digital services Michiganders need to achieve world-class connectivity," said Ken Fitzpatrick, chief executive officer of 123NET.
What could go wrong? The award is not cash spent or service delivered. Recipients move next into permitting and pre-construction work, with up to four years to finish. High deployment costs, complex permitting, and telecom workforce shortages remain hurdles.
The signal: At roughly $86 million, the grant ranks among the largest of its kind, sitting in the top 1% of comparable grant rounds for US media sector recipients. It marks 123NET's sizable role in a multi-provider effort to close Michigan's digital divide — a state with the third-highest number of BEAD-eligible locations in the country.
Read more: prnewswire.com
Image credit: 123NET
