T-Mobile to Invest $950 mn in JV with EQT to Acquire Lumos Fiber Optic Network

T-Mobile has announced plans to invest approximately $950 million for a 50 percent stake in a joint venture with Swedish investment firm EQT’s fund, aiming to acquire fiber optic network provider Lumos. The investment underscores T-Mobile’s commitment to expanding its broadband capabilities and enhancing connectivity services.
T-Mobile 5G for smartphone customersAs part of the agreement, T-Mobile will also allocate an additional $500 million between 2027 and 2028 to support Lumos in reaching 3.5 million households by the end of that period. The joint venture will enable T-Mobile to acquire all existing fiber customers of Lumos, positioning the telecom giant as its primary client.

Lumos, currently serving 320,000 households with its fiber internet services, will undergo a transition to a wholesale model following the deal with T-Mobile, retaining ownership of customer relationships.

T-Mobile’s CEO, Mike Sievert, emphasized the strategic significance of the partnership, stating, “As the demand for reliable, low-latency connectivity rapidly increases, this deal is … a significant step forward in expanding on our broadband success and continue shaking up competition in this space to bring even more value and choice to consumers.”

The transaction, expected to close in late 2024 or early 2025, reflects T-Mobile’s ambitious efforts to bolster its infrastructure and deliver enhanced broadband services to customers across the United States.