Strategic Alliance Reshapes Fiber Broadband Expansion: Clearwave Fiber Emerges as Key Player in Rural Connectivity Push

Cable One has teamed up with leading investment firms GTCR, Stephens Capital Partners, and The Pritzker Organization to establish Clearwave Fiber, a newly formed joint venture designed to accelerate fiber internet deployment across underserved regions of the United States. This partnership represents a significant milestone in addressing the connectivity gap in rural and small-town markets, combining the operational expertise of Cable One with the financial backing and strategic guidance of three major investment partners.

Ownership Structure and Investment Commitments

Who owns Clearwave Fiber? The venture reflects a carefully structured ownership arrangement where Cable One retains majority ownership while the investment partners—GTCR, Stephens Capital Partners, and The Pritzker Organization—hold substantial minority stakes alongside select members of the management team. The investor consortium has committed to making considerable capital injections to fuel Clearwave Fiber’s rapid expansion across its operational footprint and adjacent markets.

The joint venture consolidates Cable One’s subsidiary Clearwave Communications with certain fiber assets from Hargray Communications, creating a focused entity dedicated to Fiber-to-the-Premise (FTTP) service deployment. Under this arrangement, Cable One receives no immediate cash proceeds from the transaction, but maintains controlling interest in the venture. The contributed operations represent approximately 3% of Cable One’s consolidated revenues based on the three-month period ending September 30, 2021.

Leadership and Operational Vision

Michael Gottdenker serves as Executive Chairman while David Armistead takes the role of Chief Executive Officer, both bringing extensive experience from their previous leadership positions at Hargray. Their appointment ensures operational continuity and reinforces the shared values of customer-centric service that define Cable One’s corporate culture. Gottdenker emphasized the venture’s core mission: “Our primary objective is delivering fast, reliable fiber-based broadband connectivity to underserved communities while upholding the highest standards of customer service.”

The management team’s motivation centers on bridging the digital divide through strategic infrastructure investment, targeting both residential and commercial customers across small cities and larger towns that have historically lacked high-speed connectivity options.

Strategic Rationale and Market Impact

Julie Laulis, President and CEO of Cable One, articulated the company’s perspective on this partnership: “Our investor partners share our fundamental commitment to sustainable growth and operational excellence. We selected these collaborators deliberately, recognizing their track record in supporting transformational ventures while maintaining rigorous financial disciplines.”

The initiative addresses a critical market need by combining Cable One’s existing infrastructure and customer base with the growth capital and expertise of seasoned investment firms. GTCR, with its extensive portfolio spanning healthcare, financial services, technology, and telecommunications sectors, brings deep operational insights. Stephens Capital Partners contributes extensive experience in growth financing and recapitalization strategies. The Pritzker Organization, with its diversified holdings including Hyatt Hotels and Marmon Group, adds long-term value-creation perspective across industries.

Financial Architecture and Governance

The investment partners will secure board representation and maintain specified governance rights within Clearwave Fiber’s operational framework. This governance structure ensures alignment of interests while allowing Cable One to retain strategic control over the venture’s direction and priorities.

Bank Street Group provided lead financial advisory services to Cable One, while Ernst & Young handled the complex financial and operational carve-out required to establish Clearwave Fiber as a standalone entity. Legal representation included prominent firms: Cravath, Swaine & Moore and Cahill Gordon & Reindel advised Cable One, while Kirkland & Ellis, Davis Polk & Wardwell, and Covington & Burling represented the investor consortium.

Expansion Ambitions and Market Opportunity

Clearwave Fiber’s business model centers on deploying FTTP infrastructure to residential and business customers across its existing service territory while systematically expanding into nearby markets. This approach provides faster, more reliable connectivity compared to traditional broadband technologies, positioning the venture to capture growing demand in underserved regions.

The partnership recognizes a fundamental market opportunity: rural and small-town America remains significantly underconnected compared to metropolitan areas. By mobilizing substantial capital and operational expertise, Clearwave Fiber aims to close this gap efficiently while maintaining the profitability standards expected by all stakeholder parties.

About the Partners

Cable One operates as a major broadband communications provider serving over 1.1 million residential and business customers across 24 states. The Sparklight brand encompasses its family of connectivity and entertainment services, offering gigabit-speed internet, advanced WiFi capabilities, and video services to consumers, alongside scalable solutions for small, mid-market, and enterprise clients.

GTCR, established in 1980, manages investments exceeding $20 billion across more than 250 companies, specializing in growth platforms within healthcare, financial services, technology, and business services sectors.

Stephens Capital Partners functions as the principal investment vehicle for the Warren A. Stephens family and Stephens Inc., operating as a full-service investment banking firm headquartered in Little Rock, Arkansas.

The Pritzker Organization has spent over six decades building and overseeing diverse portfolio companies, with notable holdings including hospitality, manufacturing, logistics, and services enterprises, positioning it as an experienced long-term value creator across multiple industries.