T-Mobile has entered into a joint venture (JV) with EQT Infrastructure to acquire fiber-to-the-home platform Lumos from EQT’s predecessor fund, EQT Infrastructure III.

The carrier confirmed the announcement last week, following previous reports that it was in talks with fiber provider Lumos over plans to create a fiber JV in the US.

T-Mobile store
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Lumos, which is already owned by EQT, will transition to a wholesale model, while T-Mobile will serve as the anchor tenant.

The carrier expects the transaction to close later this year or early 2025, subject to customary closing conditions and regulatory approvals.

T-Mobile said it plans to invest $950 million in the JV to acquire a 50 percent equity stake and all existing fiber customers, with the funds invested by T-Mobile being used by Lumos for future fiber builds.

A further $500 million will be invested by T-Mobile between 2027 and 2028, the company added.

The funds should enable Lumos to extend its fiber offering to 3.5 million homes by the end of 2028.

At present, Lumos provides full fiber Internet, home WiFi, voice, and streaming services to 320,000 homes across Virginia, North Carolina, and South Carolina. Its network spans more than 7,500 route miles.

"As the demand for reliable, low-latency connectivity rapidly increases, this deal is a scalable strategy for T-Mobile to take 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,” said Mike Sievert, CEO of T-Mobile.

“Together with EQT and Lumos, T-Mobile is building on our position as the fastest growing broadband provider in the country in a value-accretive way that complements our sustained growth leadership in wireless."

At present, T-Mobile currently offers fiber services across 13 states, as per its T-Fiber website, but not yet in Virginia. The telco has been interested in carving out a fiber offering since 2022.

Last year, rival carrier AT&T notably formed a JV of its own with BlackRock to create Gigapower, LLC, offering fiber broadband services to Internet service providers and businesses across parts of the US.