T-Mobile and global investment firm EQT have signed a deal to create a fiber broadband joint venture that will include the fiber assets of broadband provider Lumos, which is already owned by EQT.

Washington-based T-Mobile is expected to invest approximately $950 million in the JV to acquire a 50% equity stake and all existing fiber customers, with the funds invested being used by Lumos for future fiber builds.

T-Mobile will invest an additional $500 million between 2027 and 2028 to help Lumos reach 3.5 million homes by the end of the period.

Lumos provides full fiber internet, home Wi-Fi, voice and streaming services to 320,000 homes with a focus on the markets of Virginia, North Carolina, and South Carolina. Following the acquisition it will pivot to a wholesale fiber provider, with T-Mobile acting as the anchor tenant on its network, owning customer relationships.

“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.

The transaction is expected to close in late 2024 or early 2025.