T-Mobile is acquiring U.S. Cellular’s wireless operations and certain spectrum assets in a deal worth $4.4 billion, further consolidating the wireless industry.
This transaction will provide T-Mobile with more than 4 million new customers and control over U.S. Cellular’s wireless operations and approximately 30% of its spectrum assets across various bands.
Additionally, T-Mobile will enter into a new master license agreement for more than 2,000 towers and extend the lease term for the roughly 600 towers where it is already a tenant.
Mike Sievert, T-Mobile’s CEO, stated that the deal will “create a better experience for all of our customers with more coverage and more capacity.” T-Mobile has been active in mergers and acquisitions within the telecommunications industry, having completed the takeover of its smaller rival Sprint in 2020 and merging with MetroPCS Communications Inc. in 2013 with FCC approval.
As a result of the deal, U.S. Cellular customers will gain access to T-Mobile’s 5G network, providing them with better coverage and speed, particularly for those living in underserved rural areas. U.S. Cellular Chair LeRoy Carlson Jr. expressed confidence that integrating their wireless operations with T-Mobile’s is the best way to continue delivering on their mission, given the increasing competition and capital intensity required to keep pace with the latest technologies.
U.S. Cellular customers will have the option to remain on their current plans or switch to an unlimited T-Mobile plan of their choice without incurring switching costs.
The transaction, which includes a combination of cash and up to about $2 billion of assumed debt, has been unanimously approved by the boards of United States Cellular Corp. and Telephone and Data Systems Inc., a majority shareholder of U.S. Cellular. The deal is expected to close in mid-2025.
Following the announcement, U.S. Cellular’s stock jumped more than 12%, while shares of Telephone and Data Systems surged more than 17% in pre-market trading.
The Associated Press contributed to this article.