After rumors had been flying, T-Mobile made it official that it was buying a fiber internet company called Metronet. With this deal, T-Mobile and an investment group KKR will buy Metronet together.
Metronet offers fiber internet service across 17 states and reportedly has more than two million customers as of 2024. This would give T-Mobile a huge boost to its fiber internet service as it slowly looks to grow not just its 5G home internet service but also its fiber home internet service that is currently only in a handful of markets.
“This is a unique opportunity and a smart, capital-efficient deal that enables T-Mobile to profitably build on our success in broadband and provide fast, affordable and reliable connectivity options to millions more customers nationwide as a complement to our wireless growth strategy,” said Mike Sievert, CEO of T-Mobile. “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. Together with KKR’s strong heritage of corporate partnership and global fiber franchise, we will 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.”
“As a leading investor in fiber broadband, KKR has a strong track record of building fiber networks in multiple countries around the world. Since our initial investment in Metronet in 2021, the company has grown rapidly, including constructing new fiber infrastructure and adding subscribers in attractive, underserved markets,” said Waldemar Szlezak, Partner, and Global Head of Digital Infrastructure at KKR. “Our new joint venture with T-Mobile will be transformational for the future of the Metronet business. We look forward to benefitting from T-Mobile’s industry-leading customer experience to support the company in reaching its full potential.”
With this deal, T-Mobile says it will be able to expand its internet offering. The deal is expected to close in 2025.