If you thought T-Mobile was done with acquisitions this year, think again. Many employees and customers may be unhappy with the company, but that won’t stop it from expanding. The company is reportedly looking to acquire fiber optic Internet service provider (ISP) Metronet through a joint venture with global investment firm KKR. According to a paid report from TMT Finance, T-Mobile and KKR would hold equal stakes in Metronet.
KKR and MetroNet’s friendship dates back to 2021, when KKR invested funds to accelerate the rollout of fiber optic services.
MetroNet is America’s largest privately owned fiber optic company, currently serving over 300 communities in 17 states with an estimated 2 million customers. Offering speeds up to 5 Gbit/s in select markets, the company is rapidly expanding its presence.
Metronet is also reportedly interested in offering mobile services to stay competitive, something other companies already do through MVNO partnerships.
T-Mobile has already announced its intention to form a joint venture with global investment organization EQT to acquire fiber optic internet provider Lumos. The company has previously said that wireless services alone cannot meet broadband demand, and has acknowledged the fact that fiber optics is faster than 5G home internet.
The company already offers fiber optic service in some markets through partnership agreements, and the acquisition of Lumos and Metronet will allow T-Mobile to expand its fiber optic services to more markets.
Still, these two acquisitions alone won’t be enough for T-Mobile to serve every household in the U.S. The Lumos deal will help T-Mobile serve about 2% to 3% of U.S. households by 2028, while the MetroNet deal will help it reach 1.5% of homes, according to New Street Research analyst Bikash Harlarka.
The MetroNet acquisition would be the company’s largest fiber deal to date, and while T-Mobile will need to pursue bigger deals for greater coverage, the rumored deal is still being described as a smart one.
