T-Mobile, EQT Form Joint Venture To Buy Lumos

(RTTNews) - T-Mobile US, Inc.(TMUS), a telecom major, and EQT AB Group, an investment company, announced on Thursday that they have entered into a joint venture with EQT's Infrastructure VI fund that will acquire fiber-to-the-home platform, Lumos, from EQT's predecessor fund EQT Infrastructure III.

At the closing of the transaction, expected to be closed in late 2024 or early 2025, T-Mobile is expected to invest around $950 million in the JV to acquire a 50 percent equity stake and all existing fiber customers.

The next capital contribution by T-Mobile out of an additional commitment of around $500 million is anticipated between 2027 and 2028.

These combined investments are expected to allow Lumos to reach 3.5 million homes by the end of 2028.

The JV will bring T-Mobile's retail, marketing, brand, and customer experience together with EQT's fiber infrastructure investment expertise.

Post transaction, Lumos, which currently reaches 320,000 households over 7,500 route miles with fiber optic internet and home wi-fi service in the Mid-Atlantic, will transition to a wholesale model with T-Mobile to attract new subscribers.

The JV will focus on market identification and selection, network engineering and design, network deployment, and customer installation.