T-Mobile and EQT to acquire Lumos to meet demand for fibre

T-Mobile and EQT to is a public record based on article evidence, entity context, event links, and relationship context.

Multinational mobile phone operator T-Mobile and investment firm EQT have entered into a joint venture (JV) with EQT’s Infrastructure VI fund that will acquire fiber-to-the-home platform Lumos from EQT’s predecessor fund EQT Infrastructure III. T-Mobile is expected to invest approximately $950 million in the JV to acquire a 50% equity stake and all existing fibre customers, with the funds invested by T-Mobile being used by Lumos for future fibre builds. T-Mobile cannot meet consumer demand for broadband through its fallow capacity fixed wireless product alone, and many customers want the speed and reliability that only fibre can provide.

The fibre-to-the-home platform Lumo s will be purchased by T-Mobile and EQT through a joint venture (JV) with EQT’s Infrastructure VI fund, which will take over from EQT’s previous fund, EQT Infrastructure III. Through the JV, EQT’s fibre infrastructure investment experience and T-Mobile’sretail, marketing, brand, and customer experience strengths will be combined. To provide consumers throughout the United States without fibre access today with the high-performing high-speed fibre internet connectivity, they will jointly purchase Lumos’ scalable fibre network building capabilities.

About acquisition After the deal closes, Lumos—which presently provides fibre optic internet and home wi-fi service to 320,000 households across 7,500 route miles in the Mid-Atlantic—will switch to a wholesale business model, with T-Mobile serving as the anchor tenant, maintaining customer relationships and using its name to draw in new customers. To obtain a 50% equity stake and all current fibre customers, T-Mobile is anticipated to invest roughly $950 million in the JV at closing. Lumos will use the money T-Mobile invests for future fibre builds.

Out of an additional commitment of roughly $500 million, T-Mobile is expected to make its next capital contribution between 2027 and 2028. By the end of 2028, Lumos should be able to reach 3.5 million homes thanks to these combined investments. The JV will concentrate on customer installation, network engineering and design, network deployment, and market identification and selection. Also read: What is enterprise cybersecurity? Also read: Google Pixel 9 could gain satellite SOS feature Reasons for acquisition In 16 U.S.markets, T-Mobile Fiber has gone live in select areas.

The launch and other events have demonstrated that there is a need for broadband among consumers that T-Mobile cannot satisfy with its fallow capacity fixed wireless product on its own. Many customers want the speed and dependability that fibre can offer. According to Jan Vesely, a partner in EQT’s infrastructure advisory team, the company is proud to have worked with Lumos over the past six years to quickly scale the business and provide fibre to underserved markets. They also look forward to continuing to use EQT’s extensive experience in digital infrastructure and fibre to support T-Mobile and the JV’s significant fibre buildout goals.

With the help of this new initiative, vital fibre broadband infrastructure will be constructed nationwide, enabling use cases in healthcare, education, and remote work.