- T-Mobile may be working with a private equity firm to buy fiber assets from Uniti Group
- Analysts at TD Cowen said Uniti is currently enjoying demand for FTTH as well as AI fiber support
- Major consolidation is expected in the U.S. fiber industry this year
T-Mobile and the private equity firm TPG are among companies rumored to potentially buy all, or parts, of Uniti Group, according to the research group TMT Finance. The speculation caused Uniti’s stock to rise from about $8 per share on Monday to more than $10 today.
T-Mobile is interested in Uniti's Kinetic fiber-to-the-home (FTTH) business, while TPG is eyeing Uniti’s enterprise fiber business, according to the TMT Finance report published on Tuesday. One TMT unidentified source told the publication that T-Mobile and TPG could be partnering for an offer for the entire company.
It wouldn’t be unusual for T-Mobile to partner with a private equity firm to purchase a fiber provider. That’s what T-Mobile has done to purchase both Lumos and Metronet.
TD Cowen analysts led by Gregory Williams wrote today, “The news is not surprising to us as we've continued to note Uniti is enjoying twin engines of FTTH + GenAI fiber tailwinds while both segments are at meaningful discounts to private/takeout multiples.”
But the analysts noted that there are a lot of important missing details to consider, for example whether T-Mobile is just interested in Uniti’s 2.1 million fiber locations, or the additional 1.4 million planned upgrades, or the entire 4.4 million fiber/copper footprint. On the enterprise side, it is unclear whether TPG is interested in just the fiber infrastructure or the wholesale and legacy businesses as well.
The TD Cowen analysts said Uniti’s Kinetic business is positioned well against cable. And they said it makes sense for T-Mobile to continue to boost its fiber holdings as “all three wireless carriers are racing to build ‘kingdoms’ to bundle FTTH services with wireless services for superior gross add share and churn benefits.”
Following AT&T's acquisition of Lumen Technologies’ FTTH business and Verizon's acquisition of Frontier, there are only a small handful of fiber operators remaining that have more than 1 million fiber subscribers.
“T-Mobile has stayed away from copper-to-fiber conversion risk,” wrote TD Cowen, “and as such may look at just the Kinetic fiber assets much like AT&T's purchase of Lumen's fiber plant.”
Consolidation in the fiber market
Analysts predict massive consolidation in the FTTH market this year and next.
According to a recent AlixPartners survey of 100 fiber operators and investors, 73% of operators said they were likely or very likely to engage in deals over the next year, while 53% of investors and 50% of lenders said they are likely to participate in an M&A transaction this year.
“Market consolidation is not just likely—it is inevitable,” said AlixPartners. “Smaller providers will merge, be acquired or exit. The next phase of fiber growth will not be defined by new entrants, but by strategic integration among existing players.”
Uniti and Windstream
Uniti and Windstream have a long and storied history. But in August 2025, Uniti and Windstream both became wholly owned subsidiaries of Uniti Group
Uniti Group owns Windstream, which operates the Kinetic fiber brand.