T-Mobile is set to form a joint venture (JV) with investment firm KKR to acquire Metronet, a fiber-to-the-home (FTTH) operator in the U.S.
This deal includes Metronet’s broadband infrastructure, residential fiber business operations, and its existing customers. Additionally, the JV will acquire Oak Hill Capital’s existing stake, while Oak Hill Capital and Metronet founder John Cinelli will retain minority positions in the company.
Metronet, recognized as the fastest-growing pure play fiber company in the U.S., reaches over 2 million homes and businesses across 17 states. The transaction is anticipated to close in 2025.
T-Mobile will invest approximately $4.9 billion to secure a 50 percent stake in the JV and acquire 100 percent of Metronet’s residential fiber retail operations and customers. T-Mobile will also fund the JV.
Metronet will transition into a wholesale services provider for its retail customers, with T-Mobile assuming responsibility for residential customer acquisition and support. T-Mobile plans to leverage its retail, marketing, brand, and service model to expand fiber broadband services.
Metronet will focus on network build plans, engineering, design, deployment, and customer installation, aiming to reach 6.5 million homes by the end of 2030.
“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.
“Our 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,” Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR, said.
This JV will complement T-Mobile’s existing 5G Home Internet offering, a fixed wireless solution currently serving more than 5 million households and businesses nationwide. Metronet’s fiber network, which delivers symmetrical multi-gigabit internet service, will enhance T-Mobile’s 5G mobile and fixed-wireless offerings.
Dave Heimbach, CEO of Metronet, highlighted the synergy between the two companies, stating, “Metronet’s fiber network delivers symmetrical multi-gigabit internet service directly to homes and businesses, perfectly complementing T-Mobile’s 5G mobile and fixed-wireless offerings to meet consumer demand.”
KKR brings experience in growing leading FTTH providers globally, with investments in fiber optic networks across several countries, including Chile, Colombia, Peru, the Netherlands, the U.K., Norway, and Germany. Recently, KKR closed its acquisition of Telecom Italia Netco, which owns and operates Italy’s national copper and fiber fixed line network.
