T-Mobile to expand home broadband via Metronet acquisition with KKR

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T-Mobile has formed a JV with investment firm KKR for the acquisition of Metronet. The acquisition adds a capable Internet Service Provider to T-Mobile’s portfolio of businesses and operations.

T-Mobile signs JV to buy growing Fiber ISP

America’s fastest growing 5G network provider T-Mobile has been making serious in-roads in the fixed wireless broadband provider business. The telecom and broadband internet service provider has officially acknowledged a Joint Venture (JV) with global investment firm KKR to acquire Metronet.

Specifically speaking, T-Mobile will acquire Metronet and all its broadband infrastructure. If or when the deal gets approval, T-Mobile will pay $4.9 billion to own 100% of Metronet’s residential fiber operations.

Metronet is a rapidly growing residential fiber ISP (Internet Service Provider). As part of the deal, all of Metronet’s existing customers will automatically become a part of T-Mobile’s 120 million subscribers.

Speaking about the acquisition, Mike Sievert, CEO of T-Mobile said, “Metronet is the perfect partner for T-Mobile as a leader in fiber solutions with an incredibly fast build pace, and a top-notch management team.”

Metronet becoming a part of T-Mobile will help the latter, “further expand the Un-carrier’s fiber footprint and deliver real value and choice to customers while addressing a growing demand for fast and reliable broadband,” added Sievert.

T-Mobile’s Metronet acquisition with KKR to help boost home internet services

The rapidly increasing 5G coverage offers high-speed wireless coverage. However, 5G is also optimized to offer fixed wireless internet to homes and offices.

T-Mobile has a growing presence in the increasingly popular “Home Internet” space. The telecom service provider currently has more than 5 million households and businesses as its subscribers. The company relies on Un-carrier’s 5G network and the company’s previously announced fiber partnerships.

T-Mobile currently operates on the “fallow-capacity model” with Un-carrier. Simply put, the telecom company relies on spectrum that is sitting unused.

Acquiring Metronet with KKR will reportedly boost T-Mobile’s presence in the “Home Fiber” or FTTH (Fiber to the Home) business. Metronet currently services over two million accounts across 17 states. It would be interesting to see how T-Mobile will leverage Metronet’s “100% fiber network [that] delivers symmetrical multi-gigabit internet service directly to homes and businesses.”



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