Last month, T-Mobile announced it would acquire fiber-optic internet provider Metronet through a joint venture with investment firm KKR. Now the company is trying to convince the Federal Communications Commission (FCC) to let the deal go through.
Metronet is the largest private and fastest growing fiber optic company in the United States. T-Mobile aims to take over the company’s broadband infrastructure, its retail businesses and customers. The network operator will use its marketing and service model to scale the service. Metronet will focus on the technical side of things, such as building plans and network engineering and deployment.
Metronet currently serves 2 million homes and businesses. If the transaction is approved, the company will reach 6.5 million homes by the end of 2030. Following the transaction, Metronet will become a wholesale service provider for its business customers.
A document filed with the FCC explains that the proposed acquisition will strengthen Metronet’s financial position and enable accelerated investments in its networks and expansion goals, allowing the company to better meet the needs of its customers and attract new customers. It argues that Metronet’s growth will increase competition and make fiber-optic connectivity services available to more customers across the United States.
The FCC was assured that Metronet’s existing customers would not experience any disruption as a result of the transaction because the change in ownership would take place at the holding company level and would not affect the company’s ongoing operations.
Metronet will continue to offer its existing services to its customers and will not terminate any existing contracts. The acquisition will not eliminate any service provider and therefore will not pose a threat to competition.
The application also points out that the demand for reliable, low-latency connectivity is increasing and T-MobileMetronet’s planned acquisition will enable the companies involved to meet this need, helping to bring broadband to “underserved communities that lack access to fiber today.”
While T-Mobile has certainly painted a rosy picture, the FCC may consider allegations related to the carrier’s past purchases, but will ultimately likely rule in the carrier’s favor.
