T-Mobile, EQT Joint Venture: Lumos Acquisition & Fiber Expansion

T-Mobile (NASDAQ: TMUS) and EQT, a global investment organization, have announced a joint venture (JV) to acquire Lumos, a fiber-to-the-home platform, from EQT’s Infrastructure III fund. This partnership aims to leverage T-Mobile’s retail, marketing, and customer experience expertise alongside EQT’s fiber infrastructure investment capabilities. Together, they plan to enhance Lumos’ scalable fiber network to provide high-speed internet to underserved areas across the U.S.

Post-acquisition, Lumos will transition to a wholesale model with T-Mobile as the primary tenant, utilizing its brand to attract new subscribers. The JV will focus on various aspects including market identification, network engineering, deployment, and customer installation.

Mike Sievert, CEO of T-Mobile, expressed excitement about expanding broadband services and enhancing competition in the market. He emphasized T-Mobile’s commitment to providing fast and reliable internet, addressing the growing demand for connectivity.

T-Mobile already offers fixed wireless internet through its 5G network to over 50 million households and businesses, serving more than 5 million customers. However, recognizing the need for fiber-based solutions, T-Mobile aims to further meet consumer demands for speed and reliability.

Jan Vesely, Partner at EQT, highlighted their successful partnership with Lumos and their dedication to supporting T-Mobile’s fiber buildout ambitions. This collaboration aims to create essential fiber broadband infrastructure to facilitate various sectors including remote work, education, and healthcare.

Brian Stading, CEO of Lumos, expressed pride in their achievements and commitment to improving customer experiences. Leveraging EQT’s support and T-Mobile’s brand strength, Lumos anticipates accelerating its network expansion to positively impact more lives through fiber optic internet.

The transaction is expected to close in late 2024 or early 2025, pending regulatory approvals. T-Mobile’s investment of approximately $950 million will secure a 50% equity stake and existing fiber customers, with additional investments planned to reach 3.5 million homes passed by 2028.

With this move, EQT Infrastructure VI aims to further its investment strategy while complying with regulatory standards.

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