T-Mobile US Inc
This potential partnership could mark T-Mobile's most considerable venture into fiber-optic infrastructure, positioning it to directly challenge cable providers like Comcast Corp
If the deal materializes, T-Mobile will become an anchor tenant in a new infrastructure joint venture involving Tillman FiberCo and private equity firm Northleaf Capital Partners, which announced a $500 million deal earlier this year, Bloomberg reports.
The move into the fiber market aligns with T-Mobile's strategy to diversify its services beyond wireless communications.
Following acquiring Sprint Corp in 2020, T-Mobile gained an early advantage in 5G network deployment.
It leveraged this edge to secure 4.1 million internet subscribers through its wireless home internet service. However, T-Mobile CEO Mike Sievert acknowledged limitations in competing with cable and fiber offerings, hinting at the company's interest in fiber expansion.
T-Mobile has been piloting a fiber-to-home service in select areas, exploring various avenues to enter the market, including partnerships and private financing.
Under the potential agreement with Tillman FiberCo, T-Mobile would focus on customer acquisition, providing Wi-Fi equipment, and customer support and billing for its branded fiber service.
Tillman FiberCo CEO Ken Dixon expressed plans to target regions in Nevada, Arizona, Colorado, Texas, and Florida for its fiber buildout.
This move by T-Mobile comes as AT&T Inc
In July, T-Mobile US reported second-quarter revenue of $19.2 billion, a decline of 2.6% year-on-year, missing the consensus of $19.3 billion. EPS of $1.86 beat the consensus of $1.69.
Price Action: TMUS shares traded lower by 1.13% at $141.50 premarket on the last check Friday.
