T-Mobile may be taking a page from telecom rivals Verizon and AT&T and moving into fiber in a bigger way.
The wireless carrier, which differentiates itself from its competitors by focusing almost entirely on wireless communications — home and mobile — is in discussions with Tillman Global Holdings’ fiber business to create landline infrastructure, according to Bloomberg, which cited anonymous sources. The report says the deal will be structured so that T-Mobile will be the primary user of the fiber network created by the joint venture Tillman FiberCo and private equity firm Northleaf Capital Partners.
The deal will mark T-Mobile’s biggest move into providing fiber-based internet service. The carrier in April launched limited fiber service in select markets in New York and Colorado, and has long sought partners to help realize its fiber ambitions. Its interest in this space is an acknowledgment that while 5G home service is growing in popularity, there is also plenty of opportunity in faster fiber speeds.
A T-Mobile spokesperson would not comment on Tillman specifically, but noted that the company has long been interested in fiber, and used select markets to learn more about the business.
“We are continuing these pilots to gain more insights,” he said.
Thanks to the popularity of 5G home internet, T-Mobile is already the market leader in broadband, regularly topping telecom and cable providers. Fiber will allow the company to compete with faster service against not only the likes of AT&T and Verizon, but also cable companies like Comcast and Charter.
T-Mobile CEO Mike Seifert hinted at this during an investor conference earlier this month, noting that he doesn’t see 5G home internet replacing fiber, and pointing to limitations on spectrum capacity and access in certain areas.
At the same conference, AT&T CEO John Stankey talked about how fiber is ultimately how people will be connected, and Verizon CEO Hans Vestberg talked about the economic advantages of having that fiber pipe, allowing you to offer any type of service on top of that.