High-speed internet is basically a must in our homes by now, and if you’re lucky enough to live in an area that has it, fiber is usually the best choice. It’s reliable, it’s often cheaper, and it’s usually faster.
T-Mobile, aside from offering 5G home internet, also offers fiber home internet in very select markets. The company just announced plans to buy Lumos, a fiber provider in 3 states, back in April. Now, it wants to buy out yet another small fiber provider to expand its operation.
T-Mobile and investment firm KKR have announced plans to form a joint venture to acquire Metronet, a fiber service provider with a footprint in 17 states. This potential deal, structured as a 50/50 partnership, would be T-Mobile’s most significant investment in fiber to date. The company claims that Metronet reaches over 2 million homes and is rapidly expanding.
Metronet, known for its high-speed fiber internet services and innovative financing strategies, has primarily relied on private equity funding to fuel its growth. The company has also pursued strategic acquisitions, such as Vexus Fiber in 2022, to expand its reach. This new joint venture would align with T-Mobile’s broader strategy to converge mobile and fixed-line services, enhancing its competitive position in the telecommunications market.
Existing customers of Metronet will transition to “T-Mobile” fiber customers, with Metronet becoming the “wholesale” provider of the fiber service itself.
The deal could significantly bolster T-Mobile’s fiber infrastructure, but on the other hand, Metronet only has a serious presence in 17 states. This would immediately strengthen T-Mobile’s fiber infrastructure, and T-Mobile says they plan to reach over 6.5 million customers by 2030.
