T-Mobile announced on Tuesday that it will acquire most of rival cell provider US Cellular in a $4.4 billion deal, drastically expanding T-Mobile’s customer base and bringing even greater consolidation to the wireless industry.
Under the buyout agreement, T-Mobile will take on roughly $2 billion in assumed debts and pay the rest of the amount in cash. In return, it will gain access to US Cellular’s 4 million wireless customers and hundreds of brick-and-mortar stores, as well as 30 percent of its spectrum rights, a federal license that allows companies to transmit mobile signals.
The two companies indicated that the deal will be finalized by mid-2025 pending regulatory approval.
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“By tapping into the additional capacity and coverage created through the combined spectrum and wireless assets, T-Mobile will spur competition,” the company said in a statement, emphasizing that the deal will allow it to compete with Verizon and AT&T, the nation’s largest wireless providers.
According to a separate statement from US Cellular, the company will retain its network of cellphone towers and 70 percent of its wireless spectrum licenses, which are used in its existing joint ventures with Verizon.
“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” Mike Sievert, CEO of T-Mobile, said. “As customers from both companies will get more coverage and more capacity from our combined footprint, our competitors will be forced to keep up — and even more consumers will benefit.”
In recent years, T-Mobile has focused on aggressive expansion to remain competitive in the saturated wireless market. In 2012, the company merged with Metro PCS, increasing its customer base by one-third. Then, in 2020, it acquired Sprint for $26.5 billion, and in April, it won US approval to buy budget cell service Mint Mobile.
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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