T-Mobile reportedly wants to acquire Metronet through a joint venture

It looks like T-Mobile’s acquisition game isn’t over just yet. The company is reportedly planning to buy Metronet, a fiber internet service provider (ISP) based in the United States. Unlike Mint Mobile’s sole acquisition earlier this year, T-Mobile plans to join hands with global investment firm KKR to acquire Metronet.

T-Mobile is reportedly planning to acquire Metronet through a joint venture with KKR

The news comes via PhoneArena which spotted a paywalled report from TMT finance hinting at the possible acquisition. According to the report, T-Mobile and KKR will have an equal stake in Metronet following the acquisition.

For the uninitiated, Metronet is America’s largest privately-owned fiber company headquartered in Evansville, Indiana. This renowned fiber-optic company has a user base of 2 million and currently offers services in over 300 communities across 17 states.

Apart from the Metronet acquisition, T-Mobile has already shown interest in buying fiber internet provider Lumos. And, the company plans to do so by forming a joint venture with global investment company EQT.

T-Mobile would still be far from reaching all American households

In the past, T-Mobile has stated that it couldn’t fulfill the broadband demand solely through its wireless services. It also acknowledges that fiber is considerably faster than 5G home internet. That’s the main reason why it is currently offering fiber services in a few markets. The smartphone carrier giant has been able to do so through partnership agreements with some fiber ISPs.

Now that T-Mobile is planning to acquire Lumos and Metronet through two joint ventures, it can tap into more US households than it did previously. However, Vikash Harlalka, an analyst at New Street Research, notes that the Metronet deal would help T-Mobile cover only 1.5%of American households.

Whereas, the Lumos deal would help it access 2% to 3%of total households, that too, by 2028. In short, this also means T-Mobile would still be far away from covering all American households following the planned acquisitions.