T-Mobile US and investment firm KKR have entered a joint venture (JV) to purchase Metronet, an Indiana-based ISP that serves over 2 million households across 17 states. According to a T-Mobile US press release, Metronet boasts the fastest fiber build pace among private companies in the U.S. and ranks third overall in the nation. To gain access to this extensive fiber network, T-Mobile is investing $4.9 billion for a 50% equity stake, with the other 50% acquired by KKR—bringing the total investment to approximately $10 billion.
Once the transaction closes, Metronet will provide wholesale services to its retail customers. T-Mobile US will assume full control of Metronet’s current residential retail operations and customer base. Through this acquisition, T-Mobile aims to expand its broadband services, leveraging Metronet’s existing fiber infrastructure.
The press release adds, “Metronet will focus on build plans, network engineering and design, network deployment, and customer installation. Following the transaction close, Metronet is expected to be self-funding on a go-forward basis and is expected to reach 6.5 million homes passed by the end of 2030.”
This new strategy reflects a broader initiative at T-Mobile. Prior to its Q1 earnings report, T-Mobile announced a similar JV with private equity firm EQP. This arrangement aims to make T-Mobile the anchor tenant in a fiber wholesale setup. This will enable T-Mobile to offer fiber services in several mid-Atlantic states. They will acquire regional fiber provider Lumos, launching a fiber-to-the-premise business under T-Mobile’s branding. CEO Mike Sievert stated, “I’ve been saying for a while that smart fiber partnerships would allow us to profitably serve even more broadband customers.” Like Metronet, Lumos will transition to a wholesale model with T-Mobile as the anchor tenant, assuming customer relationships with its own branding.
