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T-Mobile set to acquire major portions of U.S. cellular in a $4.4 billion deal

Women's Tabloid News Desk
Women's Tabloid News Desk

T-Mobile has announced its plan to acquire the majority of U.S. Cellular’s wireless operations and spectrum assets in a transaction valued at $4.4 billion. This deal, which includes debt, is poised to further consolidate the telecommunications industry in the United States.

Mike Sievert, CEO of T-Mobile, emphasized the positive impact of the acquisition, stating that it will enhance the customer experience by providing increased coverage and capacity. The agreement will see T-Mobile taking on more than 4 million new customers and gaining control over approximately 30% of U.S. Cellular’s spectrum assets across various bands. Additionally, T-Mobile will enter a new master license agreement covering over 2,000 towers and extend the lease term for around 600 towers where it is already a tenant.

This latest acquisition is part of T-Mobile’s ongoing strategy to strengthen its market position through mergers and acquisitions. Notably, the company completed the high-profile merger with Sprint in 2020 and previously merged with MetroPCS in 2013, both of which were approved by the Federal Communications Commission (FCC).

One of the key benefits of this deal for U.S. Cellular customers is access to T-Mobile’s extensive 5G network, which promises improved coverage and faster speeds, particularly in underserved rural areas. T-Mobile has assured U.S. Cellular customers that they can retain their current plans or opt for T-Mobile’s unlimited plans without incurring any switching costs.

The transaction involves a mix of cash and up to $2 billion in assumed debt. A portion of the cash component, up to $100 million, is contingent upon achieving certain financial and operational targets between the signing and closing of the deal.

Despite the acquisition, U.S. Cellular will retain approximately 70% of its spectrum portfolio across various bands. The boards of both United States Cellular Corp. and its majority shareholder, Telephone and Data Systems Inc., have unanimously approved the deal, which is expected to finalize by mid-2025.

Following the announcement, U.S. Cellular’s stock surged over 12% in pre-market trading on Tuesday, while shares of Telephone and Data Systems saw a more than 17% increase, reflecting investor optimism about the transaction.

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