If you thought T-Mobile was done shopping for the year, think again. Many employees and customers might be unhappy with the company but that isn’t stopping it from expanding its operations even further. The company is reportedly considering purchasing fiber Internet Service Provider (ISP) Metronet through a joint venture with global investment firm KKR.According to a paywalled report from TMT FinanceT-Mobile and KKR will have an equal stake in Metronet.
KKR and Metronet’s camaraderie dates back to 2021 when the former invested funds to accelerate the deployment of fiber optic services.
Metronet is America’s largest privately-owned fiber company and currently offers services in more than 300 communities in 17 states and has an estimated customer base of 2 million. It offers speeds of up to 5 Gbit/s in some markets and is expanding its presence at a fast clip.
Metronet is reportedly also interested in offering mobile services to remain competitive, something some other companies have already done through MVNO partnerships.
T-Mobile has already revealed its intention to buy fiber internet provider Lumos by forming a joint venture with global investment organization EQT. The company previously said that it couldn’t satisfy broadband demand through its wireless services alone. It also acknowledged the fact that fiber is faster than 5G home internet.
The company already provides fiber services in some markets through partnership arrangements. Acquisition of Lumos and Metronet would allow T-Mobile to expand fiber offerings to more markets.
Still, the two purchases wouldn’t be enough to help T-Mobile reach all American households. Per New Street Research analyst Vikash Harlalka, the Lumos deal would allow T-Mobile to reach around 2 to 3 percent of American households by 2028, while the Metronet deal would help it access 1.5 percent of households
Metronet’s acquisition would be the company’s largest fiber deal to date and though T-Mobile would need to pursue bigger deals for larger coverage, the rumored deal has still been termed as a smart transaction.
