*New York, July 25, 2024* – T-Mobile US (TMUS) and global investment firm KKR yesterday announced the formation of a joint venture to acquire U.S. fiber company Metronet. The goal of this cooperation is to offer high-quality fiber optic solutions to more US customers.
This acquisition expands T-Mobile’s fixed broadband portfolio. Metronet, the fastest growing pure fiber company in the US, currently reaches more than two million households and businesses in 17 states. By the end of 2030, its reach is expected to increase to 6.5 million households.
Under the terms of the agreement, the joint venture will acquire Metronet, including its broadband infrastructure, its growing residential fiber business and its existing customers. Upon completion of the transaction, Metronet will offer wholesale services that T-Mobile US will resell to end customers. To this end, Metronet will transfer 100 percent of its residential fiber business and customers to T-Mobile US. T-Mobile will be responsible for acquiring and servicing residential customers, supported by its established marketing and service model. Metronet will focus on network engineering, design, build-out and customer installation.
The new joint venture complements T-Mobile’s existing 5G Home Internet offering. T-Mobile’s Fixed Wireless Access (FWA) offering currently has over five million residential and business customers nationwide.
The expanded portfolio is intended to meet increasing consumer demand for faster and more reliable broadband products.
The transaction is expected to close in 2025, subject to regulatory approvals. T-Mobile plans to invest approximately $4.9 billion to acquire a 50 percent stake in the joint venture and 100 percent of Metronet’s residential fiber business and customers, and to secure financing for the joint venture. Following the transaction, Metronet is expected to be self-financing. T-Mobile does not plan to make any additional capital contributions to the joint venture beyond the aforementioned amount.
The stronger subsidiary: T-Mobile US
T-Mobile US was created from the merger and acquisition of various mobile communications companies in the USA. The foundation stone was laid in 1994 when the company Western Wireless launched the VoiceStream Wireless brand. VoiceStream became an independent company in 1999 and was acquired by Deutsche Telekom in 2001. VoiceStream was then renamed T-Mobile USA.
T-Mobile US continued to develop through acquisitions and strategic mergers. A significant milestone was the merger with MetroPCS in 2013, which created the basis for the modern T-Mobile US. This merger enabled T-Mobile to significantly expand its network coverage and customer base and establish itself as one of the leading mobile providers in the US.
The next major development came in 2020, when T-Mobile US and Sprint Corporation merged. This merger made T-Mobile the second-largest mobile provider in the US and increased its network capacity.
T-Mobile US is currently the fastest growing mobile communications company in the USA. It has now overtaken its competitors AT&T and Verizon in terms of market capitalization.
The parent company of T-Mobile US, Deutsche Telekom AG, holds 51% of the shares.
