Carriers

Once More T-Mobile is expanding its fiber-based internet network

Although T-Mobile has expanded its 5G network to accommodate home internet connections, the company is not done developing wireless infrastructure. The acquisition of a second internet service provider with an established fiber optic infrastructure has now been announced by T-Mobile.

Metronet is a fiber internet service provider that currently serves “more than 2 million homes and businesses across 17 states,” mostly in the Midwest. T-Mobile announced today that it has agreed to acquire Metronet. By the end of 2030, 6.5 million homes will be served by Metronet’s infrastructure, and current Metronet home internet users will switch to T-Mobile. In a joint venture with investment firm KKR, T-Mobile is purchasing Metronet, and T-Mobile anticipates paying approximately $4.9 billion to complete the transaction.

In a press statement, T-Mobile stated that it will “use Metronet’s deep digital and fiber infrastructure expertise to expand to more households with fiber broadband services.” T-Mobile will be solely responsible for acquiring new residential customers and providing ongoing support. It will do this by leveraging its unique retail, marketing, brand, and service model. Build plans, network engineering and design, network deployment, and customer installation will be Metronet’s primary areas of concentration.

This announcement follows T-Mobile’s April announcement that it would buy another local fiber internet provider, Lumos. Through these acquisitions, T-Mobile has demonstrated that it intends to stand up to major US internet service providers like Verizon, AT&T, Comcast/Xfinity, Spectrum, and AT&T. T-Mobile will be able to provide fiber internet service in select areas, while everyone else will continue to use their current 5G-based home internet.

It’s unknown how current Metronet users may be impacted by this change. Price increases are probably not out of the question. Especially if T-Mobile intends to use Metronet’s customer base to expand its fiber internet ambitions throughout the entire United States. T-Mobile will undoubtedly not tear down any existing fiber internet infrastructure.

Regulators still need to approve the acquisition. T-Mobile anticipates that it will be finalized by 2025

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