T-Mobile, KKR Acquire Fiber ISP Metronet

July 24 2024 – T-Mobile and global investment company KKR are launching a joint venture to acquire fiber ISP Metronet for $4.9 billion, with plans to grow its fiber network to 6.5 million homes by 2030.

The benefits of the partnership "with KKR’s strong heritage of corporate partnership and global fiber franchise, we will further expand the Un-carrier’s fiber footprint and deliver real value and choice to customers while addressing a growing demand for fast and reliable broadband," said Mike Sievert, CEO of T-Mobile.

Metronet CEO Dave Heimbach said that the company’s "fiber network delivers symmetrical multi-gigabit internet service directly to homes and businesses, perfectly complementing T-Mobile’s industry-leading 5G mobile and fixed-wireless offerings to meet consumer demand for seamless, ubiquitous connectivity.”

Heimbach said that Metronet expects to expand its fiber network to reach millions of households by the end of the decade.

T-Mobile will invest $4.9 billion to acquire a 50 percent equity stake in the joint venture. The deal includes Metronet's broadband infrastructure, residential fiber business operations, and existing customers. 

Metronet, which serves over 2 million homes and businesses across 17 states, will focus on network engineering, deployment, and customer installation. T-Mobile will manage residential customer acquisition and support, leveraging Metronet's expertise to expand fiber broadband services.

The deal is expected to close in 2025 and will complement T-Mobile’s 5G Home Internet offering. KKR's investment in Metronet is part of its global infrastructure strategy to invest in fiber networks worldwide. T-Mobile will invest approximately $4.9 billion to acquire 50 percent equity stake and 100 percent of Metronet's residential fiber retail operations and customers.

Metronet announced a $21 million investment to extend its 100 percent fiber-optic internet network to three communities in Minnesota on July 16.