T-Mobile pleads with FCC to let it buy another company, arguing everyone will be better off
Last month, T-Mobile said it intended to acquire fiber internet service provider Metronet through a joint venture with investment firm KKR. It's now trying to persuade the Federal Communications Commission (FCC) to let the transaction go through.
Metronet is the largest privately owned and fastest-growing fiber company in the US. T-Mobile aims to acquire the company's broadband infrastructure, its residential retail operations, and customers. The carrier will leverage its marketing and service model to scale the service. Metronet will focus on the technical side of things, such as build plans and network engineering and deployment.
Metronet currently serves 2 million homes and businesses and if the transaction is approved, the company will reach 6.5 million households by the end of 2030. Metronet will become a wholesale services provider for its business customers following the transaction.
In a filing with the FCC, it is explained that the proposed acquisition will strengthen the financial position of Metronet, enabling accelerated investment in its networks and expansion goals. This will allow the company to better meet the needs of its customers and attract new customers. It is argued that Metronet's growth will enhance competition and make fiber connection services available to more customers across the US.
The FCC has been assured that Metronet's existing customers will not face any disruptions because of the transaction as the change in ownership will happen at the holding company level and not affect the day-to-day running of the company.
Metronet will continue providing existing services to its customers and it will not terminate any existing contracts. The acquisition will not eliminate any service provider, so it's not going to be a threat to competition.
The filing also notes that demand for reliable, low-latency connectivity is increasing and T-Mobile's proposed acquisition of Metronet will allow the entities involved to meet that need. This will help bring broadband to "underserved communities who do not have access to fiber today."
While T-Mobile has certainly painted a rosy picture, the FCC may take into consideration allegations against its previous purchases but it will probably rule in the carrier's favor ultimately.
Metronet is the largest privately owned and fastest-growing fiber company in the US. T-Mobile aims to acquire the company's broadband infrastructure, its residential retail operations, and customers. The carrier will leverage its marketing and service model to scale the service. Metronet will focus on the technical side of things, such as build plans and network engineering and deployment.
In a filing with the FCC, it is explained that the proposed acquisition will strengthen the financial position of Metronet, enabling accelerated investment in its networks and expansion goals. This will allow the company to better meet the needs of its customers and attract new customers. It is argued that Metronet's growth will enhance competition and make fiber connection services available to more customers across the US.
The acquisition may spur other companies into action, resulting in improved broadband services not only in existing markets, but also in those where T-Mobile may expand in the future.
The FCC has been assured that Metronet's existing customers will not face any disruptions because of the transaction as the change in ownership will happen at the holding company level and not affect the day-to-day running of the company.
Metronet will continue providing existing services to its customers and it will not terminate any existing contracts. The acquisition will not eliminate any service provider, so it's not going to be a threat to competition.
The filing also notes that demand for reliable, low-latency connectivity is increasing and T-Mobile's proposed acquisition of Metronet will allow the entities involved to meet that need. This will help bring broadband to "underserved communities who do not have access to fiber today."
While T-Mobile has certainly painted a rosy picture, the FCC may take into consideration allegations against its previous purchases but it will probably rule in the carrier's favor ultimately.
T-Mobile is a huge player in the 5G internet space and this purchase and other similar acquisitions will strengthen its position further.
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