T-Mobile has announced an agreement to acquire the bulk of UScellular’s wireless assets, including its customer base, retail stores, and certain spectrum holdings. The total value of the transaction is $4.4 billion, consisting of cash and the assumption of $2 billion in debt.
This acquisition includes approximately 30% of UScellular’s spectrum assets, although specific details about these assets have not been disclosed. UScellular will retain the remaining 70% of its spectrum and its 4,400 mobile towers. Additionally, T-Mobile will lease space on at least 2,600 of these towers under a long-term agreement.
Following the completion of this deal, UScellular’s 4 million customers, primarily in rural areas, will have access to T-Mobile’s extensive 5G network. The companies emphasize that this will offer UScellular customers more competitive options, potentially lower prices, improved plans, and an enhanced network experience. Customers will also have the opportunity to switch to T-Mobile’s plans, which could provide cost savings and additional benefits.
The announcement follows a strategic review by UScellular in August 2023, which determined the company could no longer independently sustain its wireless operations due to escalating competition and the capital demands of advancing technology. LeRoy T. Carlson, Jr., Chair of the Board of Directors of UScellular, stated that integrating with T-Mobile would provide the necessary scale and investment to continue their mission.
T-Mobile CEO Mike Sievert highlighted that the combined resources would offer better coverage and capacity, compelling competitors to improve their services, thereby benefiting more consumers. Sievert also noted that T-Mobile expects to gain around $1 billion annually from increased efficiencies post-integration, despite an initial investment of $2.2 to $2.6 billion.
The transaction, pending regulatory approval, is expected to close by mid-2025. Earlier reports indicated that both T-Mobile and Verizon were negotiating to acquire parts of UScellular, with T-Mobile ultimately proceeding with this acquisition. There has been no mention of a deal involving Verizon.
