T-Mobile is set to acquire Minnetonka-based U.S. Internet (USI) as part of its fiber expansion plans.

As reported by Cord Cutters News last week, the carrier is poised to take over the Twin Cities ISP, which operates a fiber network across Minneapolis and the surrounding suburbs in Minnesota.

T-Mobile
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The publication reports that the deal was announced via a letter to USI customers, informing them that T-Mobile will be providing their fiber Internet services from September 2.

Financial details around the deal have not been revealed, and T-Mobile has not responded to DCD at the time of writing for further information. USI has also not publicly acknowledged the transaction.

“Although the closing date for our transaction has not yet been set, we anticipate that following regulatory approval, you’ll become a T-Mobile customer on or after Sept. 2,” the letter stated. The letter was sent earlier this month, noted Cord Cutters.

The deal bolsters T-Mobile's Fiber-to-the-Home (FTTH) push following the carrier's high-profile acquisition of Lumos in April as part of a joint venture with EQT Infrastructure.

T-Mobile launched its home fiber plans in June shortly after completing the Lumos deal.

The carrier will invest $950 million into the joint venture (JV), with an additional $500m planned between 2027 and 2028.

T-Mobile has launched its fiber services to 32 US markets. The carrier said that through strategic fiber partnerships and JV's, it will reach 12 to 15 million households with fiber by the end of 2030. 

The carrier also completed its fiber JV acquisition of Metronet last month, in partnership with KKR.

Metronet provides multi-gigabit Internet service in more than 300 communities across 19 states, with more communities added each month. To date, more than 2.6 million homes and businesses have access to Metronet fiber, which covers more than 42,000 miles. By 2030, the ISP is aiming to reach 6.5 million homes.

T-Mobile's rivals have also pushed hard on fiber in the last couple of years. AT&T is aiming to roll out fiber to 60 million locations by 2029, having already passed 30 million. Like T-Mobile, the company has carved out deals, including a $5.75 billion deal to buy Lumen's mass market fiber business.

Prior to this deal, which AT&T expects to complete next year, the carrier's CEO, John Stankey, had expressed plans to reach more than 50 million fiber locations by 2029. That number increased by 10 million after the Lumen deal was announced.

Meanwhile, Verizon has also been heavily invested in its fiber rollout, and is on course to acquire fiber provider Frontier Communications for $20bn.