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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.
T-Mobile US puts $4.9B in fibre JV with KKR to buy Metronet: T-Mobile US plans to spend $4.9 billion for a 50 per cent stake in US-based fibre service provider Metronet through a joint venture (JV) with investment company KKR.
Metronet’s fibre network… https://t.co/SZg5tM3DIP pic.twitter.com/lve8P7JTmW
— Mark Fermor (@fermorm) July 24, 2024
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.”
.@TMobile and @KKR_Co Announce Joint Venture to Acquire @metronetfiber and Offer Leading Fiber Solution to More U.S. Consumershttps://t.co/pfny7OTdnk
— T-Mobile Newsroom (@tmobilenews) July 24, 2024
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 US and KKR JV to acquire Indiana-based ISP Metronet
This is T-Mobile US’ second fiber JV with private equity; it will take 50% ownership in one of a fast-growing Midwest fiber provider.https://t.co/tsQaFfqs5u pic.twitter.com/Fdp60MamKM
— RCR Wireless News (@rcrwirelessnews) July 24, 2024
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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