T-Mobile Expands Fiber Footprint With Metronet Acquisition

T-Mobile and investment firm KKR have formed a joint venture (JV) to acquire fiber service provider Metronet. From a report: The fiber provider reaches over 300 communities and more than 2 million homes in 17 states. Metronet is both a pure-play fiber company and independent FTTH operator. In some markets, Metronet delivers residential speeds up to 5 Gbit/s. The acquisition includes Metronet's broadband infrastructure, residential fiber business operations and existing customers. The JV will acquire Oak Hill Capital's existing stake; Oak Hill Capital will re-invest for a minority position and Metronet CEO John Cinelli will retain a minority position after the deal closes. T-Mobile said it plans to invest nearly $4.9 billion to acquire a 50% equity stake in the JV and 100% of Metronet's residential fiber retail operations and customers, as well as funding of the JV. After the close of the deal, Metronet, based in Evansville, Indiana, will transition to a wholesale service provider for its retail customers. T-Mobile will take on management of residential customer acquisition and support, using T-Mobile's marketing and service model and Metronet's fiber broadband services.

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