For years now, T-Mobile has dabbled in the world of TV and fiber internet from home. Most recently, T-Mobile has become one of the fastest-growing home internet companies thanks to its 5G home internet service. Now, according to a report from Light Reading, T-Mobile may be about to buy a legacy cable TV company.
According to analysts at Wells Fargo, they believe T-Mobile is about to buy Frontier Communications. This would be a massive deal for T-Mobile as right now Frontier offers service in 19 states for the internet. Frontier still runs a TV service but no longer sells it to new customers. Instead, Frontier pushes YouTube TV to its customers.
Back in 2021, Frontier exited bankruptcy and is currently in the process of moving its headquarters to Texas. Not all is well with the company, though, as shares have dropped 32% since January. This move makes many believe that the rumors of a possible sale are true.
Frontier is getting pressure from within to accept a sale. According to Reuters, activist investment firm Jana Partners has taken a stake in the company and is urging it to sell.
Frontier could fit will into T-Mobile’s slow move into Fiber. Already the company offers fiber internet in New York City NY, Northglen CO, and Pueblo, CO. Plans start at $55 a month for 500 Mbps down, and it offers speeds up to 1 Gbps. T-Mobile will also give you a WiFi 6 router for free if you signup with their fiber service.
T-Mobile has already been clear home internet is a big part of its future. In the 1st quarter of 2023, T-Mobile added 523,000 new home internet customers. That number is more new home internet customers than AT&T, Comcast, Charter, and Verizon added in the 4th quarter of 2022 combined, according to T-Mobile. This comes as Americans are being drawn to cheaper new options, including T-Mobile’s $ 50-a-month home internet service.
“T-Mobile’s focused execution against our intentional growth plan delivered best-in-class postpaid and broadband customer and profitability growth in Q1 that gave us confidence to raise our 2023 guidance for customers and profitability,” said T-Mobile CEO Mike Sievert. “For more than ten years, the Un-carrier has put customers first and we will continue to do just that. Our unique ability to offer the best network and best value, coupled with moves like Phone Freedom and our new Go5G plans, will only continue to fuel our profitable future growth in this competitive environment.”
Adding Frontier to T-Mobile could help it grow its home internet business even faster. For now though we will have to wait and see if these reports are correct.