T-Mobile, which is already in the middle of a $4.4 billion deal to expand its wireless offerings by purchasing US Cellular, now plans to spend $4.9 billion more to buy Indiana-based fiber internet provider Metronet.
In a press release issued Wednesday, the company said its joint venture with the investment firm KKR will allow T-Mobile to take Metronet’s 2 million customers across 17 states while Metronet continues to operate as a wholesale provider. T-Mobile said in the release that Metronet is expected to grow to about 6.5 million customers by 2030. The deal would close in 2025.
KKR is already a minority investor in Metronet. The current owners of the broadband company, Oak Hill Capital and the family of founder John Cinelli, will retain minority stakes in the joint venture, according to the release.
The release comes the same week as U.S. Democratic senators Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota and four other senators sent a letter to the Justice Department asking for more scrutiny of the US Cellular acquisition. The letter suggested that the deal will not reduce prices for customers and would decrease choices in the market and also asked the Justice Department to review T-Mobile’s previous purchase of Sprint.
Despite the potential regulatory hurdles, T-Mobile appears to be in major expansion mode. Since 2022, it has purchased Mint Mobile, Ultra Mobile and Plum, all part of parent company Ka’ena Corporation and Play Octopus, a rideshare advertising network.
T-Mobile’s biggest competitors in the fiber internet market include AT&T, Google Fiber, Frontier, Verizon’s FIOS and Quantum Fiber.
Interestingly, Crown Castle Fiber one of the largest providers of fiber infrastructure in the country, says it’s been in talks about the sale of its assets.
