A few weeks ago, T-Mobile formed a joint venture with investment firm KKR for the acquisition of Metronet. The telco aims to expand its reach to more US households by acquiring Metronet operations. Now, T-Mobile is seeking approval from the Federal Communications Commission (FCC) to acquire Metronet.
T-Mobile is persuading the FCC to approve its $4.9 billion acquisition of Metronet
In a new filing, T-Mobile is persuading the FCC to approve its acquisition of Metronet. T-Mobile is aiming to acquire Metronet’s operations for a massive $4.9 billion deal. The telco has planned this acquisition in a joint venture with the private equity giant KKR, which is controlled by famed investors including Henry Kravis and George Roberts.
T-Mobile is going to acquire Metronet’s broadband infrastructure. The telecom operator will then leverage its marketing and service models to expand the existing service. As for Metronet, it is going to focus on the technical side of things. Some of the noted responsibilities of Metronet will include building plans and network engineering & deployment.
In the FCC filing on August 8th, the companies said that “T-Mobile will be the anchor tenant on the fiber and will leverage its brand to attract new subscribers”. The documents further mention that “The proposed transaction will serve the public interest by preserving and enhancing [Metronet’s] strengths without posing any threat of anticompetitive effects or other public interest harm, as well as being entirely transparent to consumers”.
Metronet will reach 6.5 million households by the end of 2023, given the transaction is approved
Metronet is the biggest privately owned fiber internet service provider in America. It offers services in over 300 communities in 17 states. It offers broadband speeds of up to 5 Gbit/s in some regions and is expanding its presence at a fast pace. The company currently has a subscriber base of 2 million homes and businesses.
Once the deal with T-Mobile goes through, Metronet aims to reach 6.5 million households by the end of 2030. Metronet’s acquisition will be T-Mobile’s largest fiber deal to date. Notably, T-Mobile has already shown interest in purchasing another fiber internet provider Lumos through a joint venture with EQT.