Cogent closes buy of T-Mobile’s Wireline Business

May 2, 2023
The company did not reveal how much it paid for the assets, but the deal calls for T-Mobile to become an IP transit customer.

Cogent Communications Holdings, Inc. (NASDAQ: CCOI) yesterday announced that’s previously announced deal to acquire T-Mobile’s Wireline Business has closed (see "Cogent to buy T-Mobile's Wireline Business"). The company did not reveal how much it paid for the assets, but the deal calls for T-Mobile to become an IP transit customer.

The T-Mobile Wireline Business includes the assets formerly known as Sprint GMG – basically, the legacy Sprint U.S. long-haul network. The sales agreement calls for Cogent to supply IP transit services to T-Mobile for 54 months for a fee of $700 million. T-Mobile will pay the first $350 million in equal payments over the first 12 months after closing and the final $350 million in equal payments over the remaining 42 months.

In addition to the fiber routes, Cogent says it also has gained “a current customer base who are a fit for Cogent’s products and services, and a group of experienced employees with the knowledge and capabilities to execute the company’s strategy.”

At the time Cogent announced the deal last September, the company predicted the purchase would not lead it to issue new debt or equity and that the purchase shouldn’t prove dilutive to Cogent's existing stockholders.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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