T-Mobile and EQT are entering into a joint venture defined by the acquisition of Lumos, a fiber-to-the-home platform, from EQT Infrastructure III Fund, aiming to bolster T-Mobile’s broadband services throughout the US, particularly in underserved areas. The joint venture, leveraging T-Mobile’s brand and customer service expertise and EQT’s prowess in fiber infrastructure investments, intends to use Lumos’ extensive fiber optic network to enhance high-speed internet connectivity for American households lacking fiber access. Lumos’ existing infrastructure covers 320,000 households over 7,500 route miles. Post-acquisition, Lumos will operate on a wholesale model, with T-Mobile as the primary customer interface. The transaction, expecting to close between late 2024 and early 2025 pending regular approvals, will see T-Mobile invest $950 million for a 50% equity stake. This move complements T-Mobile’s ongoing growth in broadband and wireless sectors, strategically placing the company as a leader in the provision of reliable, fast, and affordable internet services. Simultaneously, T-Mobile plans to persist with share buybacks and dividends for 2024, while EQT’s Infrastructure VI Fund forecasts 35-40% investment deployment. The partnership is indicative of a significant step forward by T-Mobile in broadening its broadband portfolio, hand in hand with EQT’s commitment to bolster digital infrastructure.

Telecommunications, Investment and Private Equity, Infrastructure and Internet Services,United States

https://news.cision.com/eqt/r/t-mobile-and-eqt-announce-joint-venture-to-acquire-lumos-and-build-out-the-un-carrier-s-first-fiber-,c3967926