T-Mobile is slated to acquire the majority of US Cellular in a transaction valued at approximately $4.4 billion. This acquisition means T-Mobile will gain ownership of all US Cellular stores, a portion of its spectrum assets, and select customer accounts.
The deal comprises a mixture of cash and an assumed debt of up to $2 billion, as detailed in a press release by US Cellular. The companies project to complete the transaction by mid-2025, pending regulatory approval.
Upon completion, T-Mobile will secure about 30 percent of US Cellular’s wireless spectrum, which it plans to leverage to enhance coverage in rural areas and provide improved connectivity for existing US Cellular customers nationwide. Current customers will have the option to retain their existing plans or transition to a comparable T-Mobile contract.
US Cellular will maintain ownership of 70 percent of its wireless spectrum and towers and will lease space on approximately 2,100 additional towers to T-Mobile. “T-Mobile is the ideal partner for our wireless operations. The decisions we announced today serve the best interests of our customers and our shareholders,” stated Laurent Therivel, CEO of US Cellular.
This move is the latest in a series of consolidation efforts by T-Mobile, which recently purchased Ryan Reynolds-backed Mint Mobile through the acquisition of parent company Ka’ena Corporation for approximately $1.35 billion. T-Mobile also merged with Sprint in 2020, demonstrating a strategy akin to Pac-Man, gobbling up smaller cellular carriers instead of dots.
The Wall Street Journal recently reported that T-Mobile and Verizon, its industry rival, had planned to “carve up” US Cellular’s wireless spectrum. However, it appears that this agreement has either fallen through or will experience significant delays.
