Enterprise fiber provider LS Networks is getting into the residential broadband game, striking a deal to acquire Pacific Northwest internet service provider PocketiNet Communications for an undisclosed sum.
Though the transaction isn’t expected to close until the second half of 2023, LS Networks is planning to become a minority owner of the company to help fuel an expansion of its fiber-to-the-home footprint in three Washington counties. Beyond to the immediate investment, an LS Networks representative told Fierce it is planning a phased growth approach to expand its residential footprint further once the deal wraps.
Founded in 2000, PocketiNet provides broadband service in parts of Washington State and Oregon. It originally rolled out fiber for business customers in 2009 and announced its first fiber-to-the-home deployments in 2015. According to data from BroadbandNow, its fiber internet is currently available to around 26,000 people. It also offers DSL service covering 9,000 people and fixed wireless broadband to around 540,000 people. Fiber speed tiers range from 150 Mbps for $65 per month to 1 gig for $110 per month.
LS Networks’ initial investment will help PocketiNet expand its existing footprint in Washington to reach 32,000 locations across Yakima, Benton and Walla Walla Counties.
Randy Brogle, who took the reins as CEO of LS Networks last month, said in a statement the acquisition of PocketiNet will allow it to “seamlessly extend our business and residential network across the Pacific Northwest.” The LS Networks representative told Fierce the PocketiNet deal is likely the first of many acquisitions it will make as it looks to grow its residential footprint.
Last month, Brogle told Fierce LS Networks was looking to reach deeper into the communities it already serves across the Pacific Northwest and beef up its business by expanding to serve more commercial, education, government, healthcare and retail entities. At the time, he noted it was not a fiber-to-the-home provider.
LS Networks could find itself squaring off with the likes of Ziply Fiber and Lumen Technologies in the Pacific Northwest. There doesn’t yet seem to be too much overlap, but Ziply and PocketiNet both appear to provide fiber service to Richland, Washington.