T-Mobile, KKR Form Strategic Alliance to Scale Metronet's Fiber Footprint Across United States

In a significant move reshaping America’s broadband landscape, T-Mobile and global investment powerhouse KKR have sealed a definitive accord to jointly acquire Metronet, marking a pivotal moment in the expansion of fiber-to-the-home (FTTH) infrastructure nationwide. The strategic collaboration will enable T-Mobile to substantially grow its broadband reach while leveraging Metronet’s cutting-edge fiber deployment capabilities and operational excellence.

Deal Structure and Financial Terms

Under the arrangement, the newly formed joint venture will take full control of Metronet’s fiber network, residential broadband operations, and customer base spanning across 17 states and reaching over 2 million homes and businesses. T-Mobile is positioned to invest approximately $4.9 billion to secure a 50% equity position in the JV, while also acquiring 100% of Metronet’s residential fiber retail division and its customer portfolio. Oak Hill Capital will maintain a minority stake following the transaction’s completion, with founder John Cinelli similarly retaining a limited ownership share.

Operational Division of Responsibilities

The post-close structure delineates clear operational roles: Metronet will transition into a wholesale infrastructure services provider, concentrating efforts on network construction, fiber deployment planning, engineering oversight, and technical installation services. Meanwhile, T-Mobile assumes comprehensive control over residential customer acquisition, retention, and support functions, capitalizing on its unparalleled retail brand strength and marketing sophistication to drive subscriber growth and service excellence.

Aggressive Expansion Roadmap

This collaboration positions the combined entity to dramatically accelerate fiber network buildout. Metronet is projected to reach 6.5 million homes by the conclusion of 2030, representing substantial growth from its current footprint. Notably, T-Mobile expects the venture to become financially self-sustaining on a forward-looking basis, with no anticipated additional capital injections required from the Un-carrier to fund expansion initiatives.

Strategic Rationale and Market Positioning

Mike Sievert, Chief Executive of T-Mobile, emphasized the transaction’s significance: “This opportunity represents a capital-efficient approach enabling T-Mobile to enhance profitability in our broadband expansion while simultaneously extending rapid, cost-effective, and dependable connectivity solutions to additional millions of customers across the nation. Metronet embodies the ideal partner—a pioneer in fiber technology characterized by extraordinary construction velocity and exceptional leadership capabilities. Through collaborative efforts with KKR’s extensive global fiber infrastructure expertise, we will meaningfully broaden the Un-carrier’s fiber presence and generate substantial customer value.”

The venture complements T-Mobile’s existing 5G Home Internet offering, which currently services over 5 million households and commercial properties utilizing advanced spectrum efficiency across the company’s nationwide 5G infrastructure, alongside previously established fiber cooperation agreements.

KKR’s Infrastructure Investment Thesis

Waldemar Szlezak, Partner and Global Head of Digital Infrastructure at KKR, underscored the investment perspective: “As a preeminent investor in fiber broadband infrastructure, KKR maintains an established track record of developing fiber ecosystems throughout multiple continents. Since initiating our investment in Metronet during 2021, the organization has demonstrated rapid expansion through new infrastructure construction and subscriber acquisition in high-potential, underserved demographics. The joint venture with T-Mobile will fundamentally reshape Metronet’s developmental trajectory, enabling the organization to leverage T-Mobile’s sector-leading customer experience capabilities while unlocking substantial upside potential.”

KKR’s infrastructure strategy, established in 2008, currently manages over $61 billion in assets across multiple jurisdictions. The firm’s fiber portfolio encompasses more than 25 million homes with existing fiber access, while constructing approximately 4 million additional homes annually through various international platforms including operations in Chile, Colombia, Peru, the Netherlands, Norway, and Germany.

Metronet’s Growth Acceleration

Metronet CEO Dave Heimbach articulated the partnership’s transformative potential: “We remain tremendously enthusiastic about intensifying our strategic collaboration with KKR and establishing a new partnership with T-Mobile—two unparalleled frontrunners in 5G wireless innovation and digital infrastructure development. Metronet’s fully-fiber architecture delivers symmetrical multi-gigabit performance directly to residential and commercial entities, seamlessly complementing T-Mobile’s market-leading 5G mobile and fixed-wireless capabilities. Through this new alliance, Metronet will substantially accelerate fiber network deployment, reaching substantially greater populations by the conclusion of this decade.”

The Evansville-based company, recognized as PCMag’s “Fastest Major ISP” for consecutive years 2023-2024, currently maintains active network expansion initiatives across more than 90 communities simultaneously, solidifying its position as the nation’s preeminent and fastest-expanding privately-controlled FTTH operator.

Transaction Timeline and Closing Expectations

The acquisition is anticipated to conclude during 2025, contingent upon fulfillment of standard closing requirements and acquisition of necessary regulatory authorizations. This timeline provides adequate runway for comprehensive integration planning and stakeholder coordination across both organizations.

The transaction underscores accelerating investor appetite for fiber infrastructure consolidation in North America, particularly as consumer demand for high-performance, dependable broadband services continues its upward trajectory across residential and commercial sectors nationwide.