T-Mobile is already working on a $4.4 billion deal to expand its wireless offerings by acquiring US Cellular, and now plans to spend $4.9 billion to acquire Indiana-based fiber optic network provider Metronet.
In a press release issued Wednesday, the company said the joint venture with investment firm KKR will allow T-Mobile to gain access to Metronet’s 2 million customers in 17 states while Metronet continues to operate as a wholesale provider. T-Mobile said in a press release that it expects the number of Metronet customers to grow to about 6.5 million by 2030.
KKR is already a minority investor in Metronet. The broadband company’s current owner, Oak Hill Capital, and the family of founder John Cinelli will retain a minority stake in the joint venture, according to a news release.
That same week, Democratic U.S. Sens. Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota, along with four other senators, sent a letter to the Justice Department asking for action against American Action. Acquisitions subject to greater scrutiny. The letter suggested the deal would not lower prices for customers and reduce choice in the market, and asked the Justice Department to review T-Mobile’s previous acquisition of Sprint.
Despite potential regulatory hurdles, T-Mobile appears to be in massive expansion mode. Since 2022, it has acquired Mint Mobile, Ultra Mobile and Plum, all part of parent company Ka’ena Corporation, as well as ride-sharing advertising network Play Octopus.
T-Mobile’s biggest competitors in the fiber optic network market include AT&T, Google Fiber, Frontier, Verizon’s FIOS and Quantum Fiber.
Interestingly, Crown Castle Fiber, one of the country’s largest providers of fiber optic infrastructure, said it was in talks to sell its assets.
