T-Mobile and UScellular have reached an agreement for T-Mobile to acquire the majority of UScellular’s wireless operations, including its customers, stores, and specific spectrum assets.
This acquisition will significantly bolster T-Mobile’s 5G network, particularly benefiting underserved rural areas. UScellular customers will transition from a limited roaming experience to enjoying full nationwide access on T-Mobile’s expansive and fast 5G network. Additionally, they will have the opportunity to switch to T-Mobile’s value-packed plans, potentially saving hundreds of millions of dollars collectively, and enjoy T-Mobile’s renowned customer support and perks.
Mike Sievert, CEO of T-Mobile, highlighted the benefits for consumers, stating, “With this deal, T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers. Our combined footprint will force competitors to keep up, benefiting even more consumers.”
Laurent Therivel, CEO of UScellular, echoed this sentiment, noting the advantages for rural Americans: “T-Mobile’s acquisition will provide best-in-class connectivity and service offerings at more compelling price points. Our customers will have access to better coverage, speeds, and a host of T-Mobile benefits.”
Enhancing Network and Value
The merger of T-Mobile and UScellular’s spectrum and assets will deliver a superior connected experience on T-Mobile’s leading 5G network. Particularly in rural areas, customers will see faster and more reliable service.
UScellular customers can opt to stay on their current plans or switch to T-Mobile’s unlimited plans without switching costs. This includes Un-carrier benefits like streaming and free international data roaming. Those who switch could see significant savings, especially with plans like T-Mobile’s 5G Unlimited 55+.
Increasing Competition and Choice
This transaction will enhance wireless choices in areas where options were previously limited or expensive, particularly against AT&T and Verizon. The combined capacity will allow T-Mobile to expand its home broadband and fixed wireless products, bridging the digital divide in underserved communities.
Proven Track Record
T-Mobile has a strong history of successful integrations, such as with MetroPCS in 2013 and Sprint in 2020, which resulted in beneficial shifts for millions of consumers. T-Mobile plans to use its proven integration strategy to ensure this new acquisition delivers exceptional value and forces competitors to improve their offerings.
Financial Details
The deal, valued at approximately $4.4 billion, will be paid through a combination of cash and up to $2.0 billion in debt. Post-transaction, UScellular will retain ownership of its other spectrum and towers, with T-Mobile leasing space on at least 2,100 additional towers.
T-Mobile expects to achieve around $1.0 billion in annual cost synergies from the integration, with total integration costs estimated between $2.2 billion and $2.6 billion. The transaction is expected to close by mid-2025, pending regulatory approvals.
This acquisition marks another step in T-Mobile’s commitment to enhancing consumer choice, quality, and competition in the wireless industry.
