Oak Hill Capital formed a new fiber-to-the-premises (FTTP) provider, Omni Fiber ("Omni" or the "Company"), to bring to market a new option for high-speed Internet service in small and mid-sized markets in the Midwest that have historically been underserved by the large phone and cable companies.
Oak Hill's $250 million commitment to Omni Fiber out of its latest flagship fund, Oak Hill Capital Partners VI, will fund new network construction to bring state-of-the-art fiber Internet, TV, and phone services to homes and businesses in communities across the Midwest, with initial projects in the states of Ohio, Pennsylvania, and Michigan.
"We are thrilled to partner with Oak Hill and are excited to provide high-quality Internet access options to small and medium communities across the Midwest," said Darrick Zucco, Omni Fiber CEO. "Oak Hill's investment will spur our growth to help bridge the digital divide and establish competitive choice by providing hundreds of thousands of households access to our future-proof, 100% fiber-optic network. We look forward to establishing and maintaining excellent service quality as we support our new customers and communities for years to come."
Omni Fiber will offer affordable, symmetrical speeds of up to 2 Gbps to homes and businesses in small and mid-sized towns in the Midwest where current high-speed options are limited. Omni will deliver what customers expect from their Internet service provider: fast Internet speeds, reliability, complete in-home coverage, and best-in-class local customer service. Omni will not require contracts for residential customers and promises no hidden fees, no data caps, no installation fees, and a 30-day money-back guarantee. With Oak Hill's investment in the Company, Omni will not need to rely on grants or subsidies from federal, state, or local governments to build its network.
Oak Hill is an experienced investor in the FTTP space, and Omni Fiber's executive team has over 80 years of combined experience in building and growing fiber networks. Oak Hill's current broadband investments that enable increased fiber access across the U.S. include MetroNet, one of the nation's largest independently owned, 100 percent fiber optic network providers; Vexus Fiber, an expanding provider in Texas, New Mexico and Louisiana; GoNetspeed in the Northeast; Race Communications in California; and Greenlight Networks in upstate New York.
"We believe that reliable, high-speed access to the Internet represents a fundamental catalyst for economic growth and equal opportunity for all Americans, from small towns to big cities," said Scott Baker, Partner at Oak Hill. "We have enjoyed strong relationships with Omni's founding executive team – Darrick Zucco, Steve Gable, Brian Ross and Andres Tovar – for many years. We are excited to formally launch our new partnership with this outstanding team as the Company builds and introduces its fiber network across the Midwest."