Kinetic Wins State Approvals of $156 Million in BEAD Grants to Expand Multi-Gig Fiber Broadband

Rhea-AI Summary

Kinetic (NYSE:UNIT) has secured preliminary approval for $156.6 million in federal BEAD program grants across four states to expand its fiber broadband network. The largest grant of $147.3 million is allocated for Georgia, targeting approximately 49,346 locations, with additional grants in Arkansas, New Mexico, and North Carolina reaching a total of 52,000 rural homes and businesses.

The company is executing a multi-year, multi-billion-dollar network modernization project, with fiber now passing over 1.7 million homes and serving an additional 2.1 million locations through neighborhood network nodes. Following its recent merger with Uniti Group, Kinetic aims to expand its 100% fiber internet service to cover 3.5 million homes by 2029, representing approximately 75% of its footprint.

Positive

• Secured $156.6 million in BEAD grants for rural fiber expansion
• Currently serves 370,000 homes and businesses in Georgia with gigabit service
• Fiber network passes 1.7 million homes with additional 2.1 million locations served through nodes
• Strategic merger with Uniti Group enables accelerated expansion plans
• Targeting 3.5 million homes coverage (75% of footprint) by 2029

Negative

• BEAD grants still require final approval from NTIA
• Rural expansion areas not economically viable without public funding support

Insights

Telecommunications Infrastructure Analyst

Kinetic's $156M BEAD grant approval strengthens Uniti's fiber expansion strategy following Windstream merger, accelerating rural market penetration.

The $156.6 million in preliminary BEAD grants represents a significant capital infusion for Kinetic's fiber expansion plans, with the Georgia allocation of $147.3 million being particularly substantial. This federal funding effectively subsidizes infrastructure deployment in rural areas that would otherwise offer insufficient return on investment, allowing Kinetic to reach approximately 52,000 additional locations without bearing the full capital expenditure burden.

The announcement reveals important strategic elements about Uniti's post-merger operations. First, Kinetic has already established a strong position in Georgia with fiber service to over 370,000 homes and businesses, with 20% of those locations built through public-private partnerships. This demonstrates the company's proven ability to effectively leverage government funding for network expansion.

The accelerated deployment timeline - reaching 3.5 million homes by 2029 (representing 75% of Kinetic's footprint) - is particularly noteworthy. This expansion rate suggests the Windstream-Uniti merger is already yielding operational efficiencies, as the combined entity can leverage Uniti's existing fiber infrastructure alongside Kinetic's service delivery capabilities. The reference to becoming "the premier insurgent fiber provider" signals an aggressive competitive stance against incumbent providers.

The diversified deployment approach is strategically sound - building both complete fiber-to-the-home connections (1.7 million locations) and neighborhood network nodes serving an additional 2.1 million locations. This tiered infrastructure approach allows for more efficient capital allocation while maintaining expansion flexibility.

Almost 52,000 rural homes and businesses in four states will get access to fiber connections

LITTLE ROCK, Ark., Sept. 10, 2025 (GLOBE NEWSWIRE) -- Kinetic, a leading residential and business fiber internet provider, today announced it has received preliminary approval of federal Broadband Equity Access and Deployment (BEAD) program grants in Georgia and three other states that will enable multi-gigabit fiber connections to approximately 52,000 rural homes and businesses, including nearly 50,000 in Georgia.

The grants, which total $156.6 million, were provisionally awarded by the individual states and are subject to final approval by the National Telecommunications and Information Administration, a part of the U.S. Commerce Department.

Kinetic’s provisional BEAD awards are:

• Georgia: $147.3 million for 49,346 locations
• Arkansas: $5 million for 1,395 locations
• New Mexico: $2 million for 280 locations
• North Carolina: $2.3 million for 943 locations

“We are proud to partner with state broadband offices across our footprint to expand our 100% fiber network,” said Jeff Small, executive vice president and chief network officer of Kinetic. “We are especially appreciative of the opportunity to expand our partnership with the State of Georgia. The BEAD award is a continuation of our robust participation in Georgia public-private partnership programs, where through state, local and federal initiatives, including BEAD, we are building fiber to over 170,000 homes and businesses.”

Public-private partnerships enable fiber expansion into areas that would not otherwise be economical to serve. Kinetic’s success in Georgia has been made possible by the state broadband office’s well-designed programs in combination with the company’s large existing fiber network and sophisticated engineering and construction capabilities.

Kinetic currently offers gigabit and multi-gigabit broadband service to over 370,000 homes and businesses in Georgia, with about 20% of those locations constructed with support from public-private partnerships.

Kinetic accelerates pace of fiber deployment

In addition to public-private partnerships and BEAD, Kinetic has been executing a multi-year, multi-billion-dollar network modernization project to expand fiber broadband service throughout its 18-state footprint. Its fiber now passes over 1.7 million homes, and the company has also built fiber to neighborhood network nodes serving an additional 2.1 million locations. The company expects to pass over 3.5 million homes with 100% fiber internet service by 2029.

Kinetic is now expanding and accelerating its fiber broadband build plans across all of its 18 states following the completion last month of the merger between Windstream and Uniti Group, Inc., as Uniti establishes itself as the premier insurgent fiber provider dedicated to enabling mission-critical connectivity.

“Extending fiber to 3.5 million locations will cover roughly 75 percent of Kinetic’s footprint, but we’re not stopping there,” Small said. “We believe we can serve additional homes beyond 3.5 million by leveraging new territories adjacent to the Uniti Fiber network now that we are one company.”

About Kinetic:

Kinetic, a business unit of Uniti (NASDAQ: UNIT), is a premier insurgent provider of multi-gigabit fiber internet, whole-home Wi-Fi, internet security, and voice services in 1,400 markets across 18 states in the Southwestern, Southeastern, Midwestern and Northeastern U.S. Additional information about Kinetic is available at gokinetic.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding the Company’s fiber build strategy. The words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would,” “predicts” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to Uniti’s indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Uniti and its predecessors’ most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as Uniti’s predecessor’s registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. The Company does not assume any obligation to update any forward-looking statements.

Investor Contact:

Bill DiTullio, 501-850-0872
Senior Vice President, Investor Relations & Treasury
bill.ditullio@uniti.com

Media Contact:

Scott Morris, 501-748-5342
Associate Director, Media and External Communications
scott.l.morris@uniti.com

FAQ

How much did Kinetic (UNIT) receive in BEAD grants for fiber expansion?

Kinetic received preliminary approval for $156.6 million in BEAD grants, with the largest portion being $147.3 million for Georgia.

How many locations will Kinetic's BEAD grants serve?

The BEAD grants will enable fiber connections to approximately 52,000 rural homes and businesses across four states, with 49,346 locations in Georgia.

What is Kinetic's fiber coverage target by 2029?

Kinetic aims to pass over 3.5 million homes with 100% fiber internet service by 2029, covering approximately 75% of its footprint.

How many homes does Kinetic's fiber network currently pass?

Kinetic's fiber network currently passes over 1.7 million homes and serves an additional 2.1 million locations through neighborhood network nodes.

How will the Uniti Group merger impact Kinetic's expansion?

The merger enables Kinetic to expand and accelerate its fiber broadband build plans across all 18 states, with potential to serve additional homes beyond the 3.5 million target by leveraging Uniti Fiber's network.