T-Mobile US and investor company EQT wrapped up their joint venture (JV) to acquire US-based FTTH provider Lumos Networks, as part of the mobile operator’s plan to offer broadband beyond its mobile-based service.
T-Mobile invested $950 million in the JV to acquire a 50 per cent equity stake, with an additional $500 million planned between 2027 and 2028 to support future expansion.
Lumos serves 475,000 homes over 7,500 route miles with fibre-based internet and home Wi-Fi across three US states. T-Mobile and EQT are targeting 3.5 million homes by end 2028.
The mobile operator stated many of Lumos’ customers will become T-Mobile fibre subscribers. T-Mobile is taking full ownership of the customer experience, and plans to use its brand, nationwide retail footprint and marketing to attract new subscribers.
The closing of the deal came roughly a year after it was first announced.
Hot market
Rivals T-Mobile, AT&T and Verizon are binge buying fibre assets as they look to expand into new areas and use it for backhaul of their mobile services.
In 2024, T-Mobile US paid $4.9 billion for a 50 per cent stake in US-based fibre service provider Metronet.
AT&T reportedly is in talks to buy Lumen Technologies’ consumer fibre operations in a deal valued at more than $5.5 billion.
It is also adding fibre customers through its Gigapower joint venture with private equity company BlackRock Alternative.
AT&T’s move follows Verizon’s $20 billion deal to buy Frontier Communications, which includes 2.2 million fibre subscribers.