HomeNewsT-Mobile mulls move into US fixed broadband market

T-Mobile mulls move into US fixed broadband market

-

Having led with FWA, it is eyeing a deal to become the anchor tenant of a fledgling joint venture for infrastructure

T-Mobile is in discussions with a Tillman Global Holdings business to become the anchor tenant of a fledgling fixed infrastructure joint venture that intends to provide wholesale FTTP, according to Bloomberg.

There are no further details about the joint ventureโ€™s plans, which was announced in August and is between Tillman FiberCo and private equity company Northleaf Capital Partners.

Deutsche Telekom (DT) is the majority shareholder in T-Mobile which was a big contributor to DT becoming first European-headquartered telecoms group to exceed โ‚ฌ100 billion market capitalisation in January.

T-Mobile is the USโ€™ second largest mobile operator, after Verizon. Since its merger with Sprint in spring 2020, T-Mobile has benefited from much of the growth in fixed wireless mobile (FWA โ€“ see graphic below)

Source: T-Mobile report on The state of fixed wireless access 2022

Bloomberg suggests that going into the fixed broadband market would โ€œput it closer to competing directly with cable providers like Comcast and Charter Communicationsโ€. Looks more like putting a toe in the water: $500 million is relatively small amount of money in a market the size of the US, where government grants are being handed out in billions of dollars.

From information on Northleafโ€™s infrastructure portfolio, it looks like entry into the US fixed broadband market would be something of a departure from its usual activities, while Tillman FiberCo was formed in 2021. Parent company, Tillman Global Holdings, โ€œis focused on investing in and operating telecommunications and energy infrastructure businesses in developed and emerging marketsโ€.