Tilson Technology Management, a national network development and telecom infrastructure services firm, has filed a lawsuit against Gigapower, the AT&T–BlackRock-backed fiber joint venture, seeking over $200 million in damages tied to a large-scale broadband buildout in Nevada and Arizona.
The complaint, filed this week, alleges that Gigapower breached its contract with Tilson and refused to pay for work already completed. Tilson alleges the venture engaged in a pattern of withholding payments and creating cash flow crises in a deliberate effort to pressure the company into accepting less favorable terms.
According to the lawsuit, Tilson followed through on its commitments, building out infrastructure with the expectation that Gigapower would pay on schedule. Instead, the suit claims, Gigapower delayed or failed to pay invoices for months at a time, resulting in more than $100 million in negative cash flow for Tilson. When Tilson refused to renegotiate rates under pressure, Gigapower abruptly terminated the contract “for convenience.”
“This misconduct caused real harm to Tilson and its employees, to the communities throughout Nevada and Arizona, and to the many skilled subcontractors who worked on the project,” the company stated in its release.
In the wake of the contract’s sudden cancellation, Tilson filed for Chapter 11 bankruptcy protection, stating that the move was necessary to stabilize operations and pursue recovery of what it claims is contractually owed.
“We entered this contract in good faith and followed through on our obligations at every step of the way, and we expect our clients to do the same,” said Tilson CEO Darrell Ingram. “This lawsuit provides a path for Tilson’s creditors, including the many vendors who worked on this project, to be paid. We will not rest until Gigapower fulfills its obligations.”
Before its financial crisis, Tilson was recognized as one of the fastest-growing telecom infrastructure firms in the U.S., generating hundreds of millions in annual revenue and employing more than 1,000 people nationwide. Known for its veteran hiring initiatives and strong safety culture, the company stated that the fallout from the Gigapower contract has had a profound impact on its workforce and partners. The company is looking to sell its assets.
Gigapower: AT&T and BlackRock’s fiber frontier
Gigapower was launched in 2022 as a strategic joint venture between AT&T and BlackRock Alternatives, one of the world’s largest infrastructure investors. It was designed to build and operate open-access fiber networks, especially in areas beyond AT&T’s traditional service footprint, allowing multiple ISPs to lease and deliver service over the same infrastructure.
The venture received $1.5 billion in funding, and AT&T planned to be an anchor tenant, leasing capacity on the network while offloading the capital burden of fiber expansion. The model offered a capital-light strategy for AT&T and a long-term yield opportunity for BlackRock’s clients.
Gigapower announced deployments in more than 25 metro areas and was expected to reach hundreds of thousands of premises.
As of today, Gigapower has not publicly responded to the allegations.
