T-Mobile is aiming to significantly expand its fiber footprint, targeting an additional 12 million to 15 million households by 2030. This ambitious goal was announced by company executives at a recent investor event according to a report from Telecompetitor.
The expansion will be fueled by T-Mobile’s fiber partnerships, notably the joint ventures with EQT to acquire Lumos and with KKR to acquire Metronet. These partnerships, announced earlier this year, position T-Mobile for substantial growth in the fiber broadband market.
Leveraging Synergies with 5G Fixed Wireless
T-Mobile sees strong potential in converting existing fixed wireless customers to fiber, particularly those seeking higher speeds or symmetrical service. Mike Katz, T-Mobile’s President of Marketing, Strategy and Products, highlighted the benefits of this transition, stating that it not only provides customers with the desired connectivity but also frees up capacity for new 5G broadband customers.
This strategy is particularly relevant considering T-Mobile currently has a waiting list of 1 million people for its 5G broadband service. Additionally, offering fiber could help retain customers who might otherwise switch providers if the company’s 5G network becomes congested.
Confidence in Fiber Partners and Broadband Strategy
Katz expressed enthusiasm about the company’s fiber partners, emphasizing their successful track record in deploying fiber and capturing market share. However, T-Mobile remains committed to its fixed wireless offering, which has been highly successful, prompting the company to raise its target to 12 million 5G broadband customers by 2028.
T-Mobile also believes its broadband customer acquisition costs will be lower than competitors’ due to its brand, distribution, and existing customer base. Furthermore, the company anticipates lower costs to serve and faster take rates compared to rivals.
Overall, T-Mobile’s aggressive fiber expansion plans signal its determination to compete fiercely in the broadband market. By leveraging its fiber partnerships and capitalizing on synergies with its 5G fixed wireless service, the company is poised for significant growth in the coming years.