Blackstone-backed fiber network provider is entering the Austin market
A new fiber internet provider is coming to Austin.
A Florida-based fiber optic internet provider backed by Blackstone, a trillion-dollar investment firm, is expanding its unique business model into Texas.
Hotwire Communications serves homeowner's associations, master-planned communities, businesses and schools over individuals residences, and functions without retail storefronts, like AT&T and Spectrum do.
The company launched in 2002, focused on South Florida before finding market similarities in Texas.
"When we looked at Texas as a whole, we saw that that market and a lot of similarities to our Florida market and really the customer base, the homeowner association environment was very similar," David Ramos, president of Hotwire's enterprise business, told the American-Statesman. "We saw a great potential with how much new construction was going on. A lot of our existing clients moving into Texas opened our eyes to that."
Just like it did before launching in Tampa Bay, Hotwire spent the past couple years establishing a presence in the Austin market before going public. Hotwire invested in infrastructure and fiber network buildouts, data center developments and securing staffing before announcing its in the Austin market this month, Ramos said.
Ramos said Hotwire focuses on customer service and eliminating disruptors to the network with its "luxury" fiber internet.
"We build dedicated networks so every home gets access to their own internet without worrying about how many neighbors are using the network at six o'clock," Ramos said. "We provide the ability to scale, so if you're a regular user that needs only a gigabit, or you're a power user that needs 10, you never impact your neighbors, or vice versa."
Internet provider T-Mobile has been eyeing purchasing Hotwire Communications, partnering with global investment firm KKR to bid in the auction process for the internet service provider. Ramos did not comment on the sale as nothing is final yet.
Ramos said Hotwire is 100% fiber-based. Fiber optic networks use thin strands of glass or plastic to transmit data as pulses of light and are designed for high-speed, long-distance communications and data transmission.
Ramos explained that Hotwire's network is built so if a fiber is cut or damaged, it continues operating.
"The investment in that is the fiber networks throughout your community, the fiber networks that then connect to data centers and to the outside world that provide redundancy," Ramos said. "You have an option, right We're not for everyone. We understand that. Our business model is not for everyone, but for for those that appreciate a high quality product is reliable, always on at a great rate, and that you can enjoy doing business with the provider, that's us."
This article originally appeared on Austin American-Statesman: Blackstone-backed fiber internet provider is coming to Austin
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