FX.co ★ T-Mobile, EQT Form Joint Venture To Buy Lumos

T-Mobile US, Inc., a major player in the telecommunications sector, has announced a joint venture with EQT AB Group, an investment company. The venture involves EQT's Infrastructure VI fund which will purchase the fiber-to-the-home platform, Lumos, previously belonging to EQT Infrastructure III.

The finalized transaction is projected to occur between late 2024 and early 2025 during which T-Mobile is expected to invest about $950 million. This investment will grant T-Mobile a 50% equity stake in the joint venture along with all current fiber customers.

In the interval of 2027 and 2028, T-Mobile is further projected to make an additional capital contribution of approximately $500 million. With these collective investments, Lumos is anticipated to expand its reach to about 3.5 million homes by the end of 2028.

This venture will combine T-Mobile's customer experience and retail, marketing, and brand prowess with EQT's expertise in fiber infrastructure investment.

Upon completion of the transaction, Lumos, presently providing fiber optic internet and home wi-fi service to 320,000 households over an extensive 7,500 route miles in the Mid-Atlantic region, plans to transition to a wholesale model in collaboration with T-Mobile to attract new customers.

The venture will zero in on the identification and selection of markets, network engineering and design, network deployment, and customer installation.