T-Mobile, the US’s 5G frontrunner and swiftly expanding broadband provider, with EQT, a global investment entity, has publicized their collaborative foray into a joint venture with EQT’s Infrastructure VI fund to procure Lumos—the fiber-to-the-home venture—from EQT Infrastructure III. The partnership will see T-Mobile’s characteristics in retail, marketing, and customer experience integrated with EQT’s prowess in fiber infrastructure investments to bolster a profound network penetration, benefiting many Americans lacking access to fiber connectivity. As the transaction concludes, Lumos will shift to a wholesale model with T-Mobile as the prime lessor, leveraging its incumbent brand to entice fresh subscribers focused on identifying optimal markets, crafting engineering solutions, deploying network services, and orchestrating customer set-ups. T-Mobile’s CEO Mike Sievert emphasized this strategy as a pivotal move to intensify broadband achievements and enhance consumer value and choice within the market. The fusion of T-Mobile’s unique selling point of reliable connectivity with EQT’s digital infrastructure knowledge aims to build substantial fiber broadband structures that would support remote work, education, and health services, as per Jan Vesely from EQT’s Infrastructure Advisory Team. Lumos’ CEO Brian Stading is confident in quickening network expansion, buoyed by EQT’s support. Financial projections place T-Mobile’s investment at approximately $950 million for a 50% stake and existing fiber customers at closing, orchestrating a capital infusion used by Lumos for future fiber projects. A following investment of around $500 million is expected between 2027 and 2028. Ideal outcomes estimate Lumos reaching 3.5 million homes by 2028 end. EQT Infrastructure VI is poised to be 35-40% vested upon transaction completion, oriented by targeted fund size and normal regulatory clearances. T-Mobile maintains aspirations to fulfill its share buybacks and dividends in 2024. The transaction’s finalization is slated for late 2024 or early 2025, contingent on regular closing conditions and regulatory green lights. The advisory realm saw Citigroup Global Markets Inc. align with T-Mobile, while The Bank Street Group and Simpson Thacher & Bartlett LLP advised Lumos and EQT Infrastructure III; Kirkland & Ellis LLP, JP Morgan, and Goldman Sachs & Co. LLC counseled EQT Infrastructure VI.

Telecommunication Services, Private Equity, Information Technology Services, Infrastructure Investment,United States

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