T-Mobile is acquiring nearly all of US Cellular’s wireless operations, customers, stores and specific spectrum assets for $4.4 billion, aiming to put heat on its competitors with lower prices, faster speeds and better 5G performance.
“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of US Cellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” said T-Mobile CEO Mike Sievert in a statement.
Sievert said customers of 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.”
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“This deal will create opportunity for T-Mobile to bring millions of US Cellular customers lower prices and the Un-carrier’s superior value on our best-in-class nationwide 5G network, offering much needed choice and more real competition across the wireless industry,” said Sievert.ADVERTISEMENT
The deal is expected to close by the middle of 2025.
CEO: US Cellular Will ‘Fill Gaps’ In T-Mobile
T-Mobile’s CEO said bringing together US Cellular’s network resources with his company will enable T-Mobile “to fill gaps in connectivity that will create a better experience for all of our customers” with more coverage and more capacity.
T-Mobile said its 5G network will be enhanced by US Cellular’s spectrum and tower assets. “This will be a real win for consumers across the U.S.,” said Sievert.
T-Mobile will buy about 30 percent of US Cellular’s wireless spectrum with plans to boost coverage in rural areas while offering better connectivity to customers across the U.S.
The acquisition comes shortly after T-Mobile completed its $1.35 billion acquisition of Ka’ena, the parent company of Mint Mobile, on May 1.
What Will US Cellular Keep? Why It Merged With T-Mobile
US Cellular will allow its customers to keep their current plans or switch to a plan from T-Mobile.
US Cellular retains approximately 70 percent of its spectrum portfolio across several spectrum bands and will seek to opportunistically monetize those retained assets. The company also plans to lease space on at least 2,100 additional towers to T-Mobile.
“For over 40 years, US Cellular has delivered on its mission of connecting people to what matters most, and this transaction will ensure customers have access to the level of service they deserve,” said US Cellular chairman LeRoy Carlson, Jr., in a statement.
Carlson added that, “In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies … we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile.”
Rual Americans comprise nearly 40 percent of the population that US Cellular serves.
T-Mobile has the resources to provide US Cellular’s customers with an unparalleled network experience, lower prices and higher-quality services, Carlson said.
T-Mobile will purchase US Cellular via a combination of cash and up to $2 billion of assumed debt.