What 123NET does

123NET (legal entity 123.Net, LLC) is a Michigan-based, privately held infrastructure and communications provider founded in 1995 and majority-owned by digital-infrastructure private equity firm Grain Management since July 2024. The company builds and operates a regional fiber backbone of 4,500+ route miles (with 8,100+ commercial buildings lit), four SOC-audited carrier-neutral data centers totaling 100,000+ sqft of compliant colocation space, and 55+ fixed wireless tower sites spanning 35+ Michigan cities. It also founded and operates two internet exchange points, DET-iX (the 7th-largest by throughput in North America) and GRR-iX, which anchor a regional peering ecosystem of 40+ carriers and major clouds including Google and AWS.

The product portfolio combines dedicated fiber and fixed wireless internet, dark fiber, MPLS, wavelengths, SD-WAN, cloud connect, DDoS protection, and IP failover for enterprise and SMB customers, complemented by Hosted IP PBX, SIP trunking, and MS Teams Direct Routing voice services. In March 2026, 123NET added AI-powered UCaaS and CCaaS (call intelligence, sentiment analysis, CRM integrations via Salesforce and HubSpot) through a partnership with Intermedia Intelligent Communications. Service-level guarantees include 99.99% network uptime, 100% data center power uptime SLA, and symmetrical fixed-wireless speeds up to 10 Gbps deployable in 7-14 days.

Revenue is generated primarily through subscription/Monthly Recurring Charges across dedicated internet, colocation, voice, and dark fiber, plus managed SD-WAN and firewall services and per-user UCaaS/CCaaS licensing. Pricing is quote-based and not publicly disclosed, with tiered speeds, term commitments, and early-termination fees. The company sells through enterprise field sales (large corporations, healthcare, government), inside sales for mid-market, an Agent Partner and Wholesale/Carrier program (e.g., CCS Technologies, Dato Technology Solutions), and — newly — direct-to-consumer residential fiber, including BEAD- and ARPA-supported public-private broadband projects in Allegan and Ottawa counties that target underserved Michigan communities.

Name

123NET

Legal name

123.Net, LLC

Website

https://123.net

Company type

Private

Founded year

1995

Operating status

Operating

Headcount range

251–500 employees

Short description

Michigan-based fiber internet, carrier-neutral data center, fixed wireless, and voice provider serving enterprises, SMBs, carriers, government, and residential customers via a 4,500-mile fiber network, four data centers, and two regional internet exchanges.

Ownership category

akta.pro rank

Product category

Telecommunications Services

NAICS

Wired Telecommunications Carriers (517111), Wired and Wireless Telecommunications (except Satellite) (5171), Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (518210)

SIC

Communications Services, Nec (4899), Telephone Communications (No Radiotelephone) (4813)

akta.pro primary industry

Neutral-Host Fiber & Shared Access Network Operators (HDAIACAJ)

akta.pro secondary industries

Fiber ISPs (FTTH/FTTP Retail Providers) (HDAIADAE), Wholesale Wavelength, Spectrum & Dark Fiber Providers (IRU/Leases) (HDAIALAI), Fiber-to-the-Home (FTTH) Operators (HDAIACAB), Rural Broadband & Cooperative Fiber Operators (HDAIACAG)

Keywords

• Fiber optic internet
• Data center colocation
• Fixed wireless broadband
• Unified communications
• Dark fiber networks

Headquarters

HQ city

Southfield

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Personnel, Operations, Technology or R&D, Marketing or Sales

Revenue model

1. Dedicated Internet Access (Fiber & Fixed Wireless): Monthly recurring charges for dedicated business-grade fiber and fixed wireless internet with guaranteed bandwidth, SLAs, and static IPs. Tiered pricing based on speed and service level.
2. Data Center Colocation: Colocation services including cabinet rentals, secure cages, and private suites with power, cooling, and smart hands support. Billing begins when electricity is installed and available in the cabinet.
3. Voice Services (Hosted IP PBX, SIP Trunking, MS Teams Direct Routing, T1/PRI): Hosted and managed voice solutions for businesses, including SIP trunking and hosted PBX. Billing begins at initial scheduled port/install date or 30 days after circuit installation, whichever is sooner.
4. Dark Fiber and Wavelength Services: Private fiber network and high-capacity wavelength optical connections for carriers and enterprises requiring dedicated infrastructure.
5. SD-WAN and Managed Network Services: Software-defined wide area networking and managed firewall services as part of integrated network solutions.
6. UCaaS and CCaaS (Unified Communications as a Service): AI-powered cloud communications platform consolidating voice, contact center, video meetings, SMS, collaboration, and CRM integrations. Revenue from subscription per-user licensing.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels6 records

Core offering

123NET provides fiber optic internet access, fixed wireless broadband, carrier-neutral data center colocation, dark fiber, MPLS, wavelengths, SD-WAN, cloud connect, and hosted voice/UCaaS/CCaaS services across Michigan. The company operates a 4,500+ route mile owned fiber network, four SOC 2 compliant data centers spanning 100,000+ sqft, the DET-iX and GRR-iX internet exchange points, and 55+ fixed wireless tower sites. It sells connectivity services primarily on monthly recurring subscriptions to enterprise, SMB, government, education, and carrier/wholesale customers, with a growing residential home fiber offering delivered through public-private partnerships.

Product overview

123NET operates as a comprehensive Michigan-based internet service provider and technology company offering a unified portfolio of connectivity, data center, and voice solutions. The core product suite includes dedicated fiber and fixed wireless internet access, carrier-neutral data center colocation (100,000+ sqft across four facilities), dark fiber, MPLS, wavelengths, SD-WAN, and cloud connectivity services. Voice offerings encompass Hosted IP PBX, SIP Trunking, and MS Teams Direct Routing. The company also operates Michigan's largest carrier hotels including the Detroit Internet Exchange (DET-iX, ranked seventh largest in North America) and Grand Rapids Internet Exchange (GRR-iX). Recent additions include AI-powered Unified Communications (UCaaS) and Contact Center (CCaaS) products delivered through a partnership with Intermedia, featuring call intelligence and sentiment analysis. The company serves enterprise, business, and residential segments across Michigan through direct services and public-private broadband partnerships (Allegan and Ottawa Counties).

Differentiator

Problem solved

Functional benefit

Brands

• DET-iX (Detroit Internet Exchange): The seventh largest internet exchange point by throughput in North America, founded by 123NET in 2015.
• GRR-iX (Grand Rapids Internet Exchange)

Products and services

• Dedicated Internet Access Fiber and fixed wireless dedicated internet service providing businesses with dedicated bandwidth, symmetrical speeds, static IPs, and 100% uptime guarantee for business-critical operations.
• Fixed Wireless Internet Fixed wireless broadband service with symmetrical upload/download speeds up to 10 Gbps, 128/256-bit AES encryption, SLA-backed reliability, and rapid 7-14 day deployment across 55+ tower sites.
• Data Center & Colocation Carrier-neutral data center and colocation services providing cabinet rentals, secure cages, and private suites with redundant high-capacity cooling, (N+1) power redundancy, dedicated substation power, and smart hands support across four metro Detroit and Grand Rapids facilities.
• Ethernet Services (E-Line and E-LAN) E-Line and E-LAN Ethernet services providing point-to-point and multipoint connectivity for enterprise networks.
• Dark Fiber Private fiber network infrastructure allowing organizations to have exclusive control of dedicated fiber strands for maximum security and scalability.
• MPLS Multiprotocol Label Switching service for enterprise-wide private network connectivity with quality of service guarantees.
• Wavelengths High-capacity direct optical connections for ultra-fast point-to-point data transmission between network nodes.
• SD-WAN Software-Defined Wide Area Network service enabling centralized network management, application routing optimization, and improved connectivity for multi-site organizations.
• Cloud Connect Direct private connections to cloud service providers (Google, AWS), bypassing the public internet for more secure and reliable cloud connectivity.
• Voice Services Comprehensive business voice solutions including Hosted IP PBX, SIP Trunking, MS Teams Direct Routing, and T1/PRI services.
• DDoS Protection Real-time monitoring and mitigation service protecting customer networks from distributed denial-of-service attacks through anomaly detection and automated threat response.
• Detroit Internet Exchange (DET-iX) Michigan's largest carrier hotel and the seventh largest internet exchange point by throughput in North America, providing peering between carriers, ISPs, and enterprise networks including Google, AWS, and GM.
• Grand Rapids Internet Exchange (GRR-iX) Regional internet exchange point in Grand Rapids enabling local network peering and improved connectivity for West Michigan.
• Small Business Fiber Internet Shared business-grade fiber internet designed for small businesses, offering reliable connectivity at more accessible price points than dedicated fiber.
• Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) AI-powered cloud unified communications and contact center platform consolidating voice, video meetings, SMS, collaboration, and contact center tools with AI-powered call intelligence, sentiment analysis, and CRM integrations with Salesforce and HubSpot.
• Home Fiber Internet Residential fiber internet service offering speeds up to 6 Gbps for Michigan homeowners, delivering ultra-fast connectivity without data caps.

Quantifiable outcome

• Network availability: 99.99% uptime for internet and core network nodes; 99.995% for transport services
• +4 more outcomes

Named customers18 records

Segments6 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability5 records

Feature5 records

Partnerships

Eleven partnerships are on record, tiered core, major and minor.

• Intermedia Intelligent CommunicationscoreTechnology or Integration · 2 March 2026123NET partnered with Intermedia, a global AI-powered cloud communications provider, to enhance its Unified Communications platform with AI capabilities. The partnership introduced 123NET UCaaS and 123NET CCaaS products featuring AI-powered call intelligence, sentiment analysis, CRM integrations with Salesforce and HubSpot, enhanced video conferencing, and business SMS targeting Michigan businesses.
• STELLAR BroadbandmajorStrategic or Co-development Partner · 9 January 2026Strategic partnership to expand fiber connectivity from Lansing to Grand Rapids, representing a multi-million dollar investment in high-density fiber infrastructure. Secured capacity on approximately 83 miles of newly constructed underground fiber, establishing a total network reach of approximately 225 miles linking Detroit (Southfield), Lansing, and Grand Rapids. Enables STELLAR to extend multi-Gigabit fiber services to more multi-dwelling units, communities, and businesses.
• DonermajorGTM or Marketing Partner · 15 December 2025123NET appointed Doner as its creative and strategic agency of record. Doner will develop brand strategy, visual identity, creative, and media plans for 123NET's campaign debut in Michigan in early 2026. This represents 123NET's first major branded marketing campaign.
• CCS Technologies (formerly Coopersville Computer Services)coreChannel Partner/ Reseller/ DistributorCCS Technologies, a West Michigan IT services company founded in 1976, serves as a wholesale partner referring 123NET's fiber internet services to SMB clients. The partnership provides CCS clients with stable, robust fiber connectivity backed by superior customer service. Both companies share a Michigan-based, customer-focused approach.
• Dato Technology Solutions LLCcoreChannel Partner/ Reseller/ DistributorDato Technology Solutions, founded in 2016, is a trusted 123NET partner for three years providing managed IT, cybersecurity, and business communications services. The partnership allows DTS to offer fiber internet solutions to Michigan-based clients seeking access to a global network. 123NET supports DTS's cybersecurity and cloud offerings with reliable, scalable network infrastructure.
• Detroit Internet Exchange (DET-iX)coreStrategic or Co-development PartnerDET-iX is the seventh largest exchange point by throughput in North America and is founded by 123NET. It serves as a peering exchange within 123NET's carrier hotel, connecting carriers, ISPs, and enterprises including Google, AWS, GM, and others for faster, lower-cost data exchange.
• Grand Rapids Internet Exchange (GRR-iX)coreStrategic or Co-development PartnerGRR-iX is an internet exchange point operated by 123NET in Grand Rapids, Michigan, expanding peering capabilities to West Michigan and complementing DET-iX.
• Peninsula Fiber NetworkminorStrategic or Co-development Partner123NET and Peninsula Fiber Network completed a major fiber installation, expanding network infrastructure in Michigan.
• Allegan County (Public-Private Partnership)majorStrategic or Co-development Partner123NET won a public-private partnership to deliver broadband network to the entire Allegan County. Lee Township also joined this county-wide broadband project. Supported by federal and state funding programs to serve underserved residents.
• Ottawa County (Public-Private Partnership)majorStrategic or Co-development PartnerOttawa County partnered with 123NET to bring high-performance internet access to approximately 4,000 underserved residents through an open-access, high-performance network. Grand Haven Township added 5.5 miles of fiber in rural areas as part of this initiative. Supported by federal ARPA funding and BEAD programs.
• Grand Haven TownshipminorStrategic or Co-development PartnerGrand Haven Township in Ottawa County entered an agreement with 123NET to construct 5.5 miles of high-capacity fiber in rural areas lacking high-speed internet. Project leverages ARPA funding and aligns with the broader county-wide broadband initiative.

Scale indicators12 records

Recent moves14 records

Expansion highlights8 records

Direct peers

• Lightpath (Altice USA): B2B fiber operator in the Northeast U.S. serving enterprises, governments, and carriers. Comparable to 123NET on dedicated fiber, Ethernet, dark fiber, and managed services for mid-market and enterprise customers.
• WOW! (WideOpenWest): Cable and fiber broadband provider with a regional U.S. footprint overlapping Michigan-adjacent markets. Comparable on hybrid cable/fiber residential and SMB internet services and similar mid-cap regional profile.
• Metronet: Regional fiber-to-the-premises ISP serving the Midwest and Southern U.S., now majority-owned by KKR. Comparable to 123NET on fiber-led residential and SMB internet services, multi-state expansion strategy, and PE ownership profile.
• Zayo Group: Wholesale fiber, wavelength, and dark fiber provider across North America and Europe. Comparable to 123NET on dark fiber, wavelength, and enterprise/private network services targeting carriers and large enterprises.
• TDS Telecom: Regional incumbent telecom and fiber operator (subsidiary of Telephone and Data Systems) serving rural and small-town U.S. markets. Comparable to 123NET on fiber overbuild strategy, rural broadband funding pursuit, and residential/business mix.
• Everstream: Mid-market B2B fiber and data center provider across the Midwest. Most directly comparable to 123NET on enterprise fiber focus, regional Midwest footprint, and managed network services; also Ken Fitzpatrick's previous company.

Broad incumbents

• Lumen Technologies: National incumbent carrier with enterprise fiber, wavelength, and managed network services. Comparable on enterprise dark fiber and wavelengths but at vastly larger scale and broader geographic footprint than 123NET.
• Frontier Communications: National fiber overbuilder with significant Michigan fiber footprint. Comparable to 123NET on residential FTTH and SMB fiber expansion in overlapping Michigan markets; larger scale and broader geographic reach.
• Crown Castle Fiber: U.S. tower and fiber infrastructure operator with dark fiber and small-cell backhaul across major markets including the Midwest. Comparable to 123NET on carrier-facing fiber and infrastructure monetization but with a national footprint.

Regional players

• Peninsula Fiber Network: Michigan-based wholesale fiber network operator partnering with 123NET on fiber builds. Comparable on dark fiber and wholesale carrier services in Michigan/Upper Midwest, but primarily wholesale-focused rather than serving end enterprises like 123NET.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/123NetInc
• YouTubeyoutube.com/user/123netco
• Facebookfacebook.com/570211793085613
• LinkedInlinkedin.com/company/123net
• Instagraminstagram.com/123netinc

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 123NET