T-Mobile (NASDAQ: TMUS), a leader in 5G and the fastest-growing fixed wireless broadband provider in the U.S., has announced a definitive agreement to form a joint venture (JV) with global investment firm KKR (NYSE: KKR). This JV will acquire Metronet, including its broadband infrastructure, rapidly expanding residential fiber operations, and existing customer base. As part of the deal, the JV will also take over Oak Hill Capital’s current stake. Oak Hill Capital will reinvest to maintain a minority position, and Metronet’s founder, John Cinelli, will also retain a minority stake upon deal closure.
Metronet, recognized as the fastest-growing fiber-only company in the U.S. and a seasoned fiber-to-the-home (FTTH) operator, currently serves over 2 million homes and businesses across 17 states with its advanced fiber broadband platform. After the transaction, Metronet will operate as a wholesale services provider, with T-Mobile assuming full responsibility for its residential fiber operations, including customer acquisition and support. T-Mobile plans to leverage its retail and marketing strengths, along with Metronet’s fiber infrastructure expertise, to expand its reach to more households.
Metronet will concentrate on network buildouts, engineering, deployment, and customer installations. It is expected to fund itself post-transaction and aims to reach 6.5 million homes by 2030. T-Mobile does not anticipate additional capital contributions to the JV beyond the initial investment.
Mike Sievert, CEO of T-Mobile, commented, “This partnership is a strategic and efficient move that will enable us to enhance our broadband success and offer fast, affordable connectivity to more customers. Metronet’s rapid expansion and strong management make it an ideal partner, and with KKR’s global fiber expertise, we’ll significantly grow our fiber footprint.”
KKR’s Waldemar Szlezak, Partner and Global Head of Digital Infrastructure, stated, “KKR’s extensive experience in building fiber networks globally positions us well to support Metronet’s growth. Our JV with T-Mobile will transform Metronet and leverage T-Mobile’s superior customer experience.”
The new JV will complement T-Mobile’s existing 5G Home Internet service, which covers over 5 million households and businesses, and its prior fiber partnerships. This expanded portfolio aims to meet the increasing consumer demand for high-speed and reliable broadband.
Metronet CEO Dave Heimbach expressed enthusiasm about the new partnership, noting that Metronet’s fiber network aligns perfectly with T-Mobile’s 5G and fixed-wireless services. The collaboration is expected to accelerate Metronet’s network expansion and reach millions more households by 2030.
KKR is investing in Metronet through its global infrastructure strategy, which began in 2008. With over $61 billion in infrastructure assets, KKR has a robust history of investing in FTTH providers worldwide, including projects in Chile, Colombia, Peru, the Netherlands, and recent acquisitions in Italy.
The transaction is anticipated to close in 2025, pending regulatory approvals and customary conditions. T-Mobile plans to invest approximately $4.9 billion to secure a 50% equity stake in the JV and take over Metronet’s residential fiber operations and customers.
