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T-Mobile will acquire the majority of UScellular’s assets for $4.4 billion.
At that price, T-Mobile will gain control of UScellular’s wireless customers, stores, and specified spectrum assets, T-Mobile announced Tuesday. Chicago-based UScellular is the fifth-largest full-service wireless carrier in the U.S.
The deal will give UScellular customers access to T-Mobile’s nationwide 5G services, and will give them the option to stick with their current plans or to switch to one of T-Mobile’s cellular plans. Existing T-Mobile customers will also gain access to UScellular’s network in areas that with previously limited coverage, particularly in rural spots.
“As customers from 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,” said T-Mobile CEO Mike Sievert, touting the competitive benefits of the acquisition.
T-Mobile said the merger will “create a much-needed choice for wireless in areas with expensive and limited plans from AT&T and Verizon, and for those that have been limited to one or no options for home broadband connectivity.”
The Bellevue, Washington-based company, which boasts the largest 5G network in the country, has continued to expand its reach over the last decade, acquiring MetroPCS in 2013 and Sprint in 2020.
UScellular will retain its ownership of parts of spectrum as well as its towers. T-Mobile will enter into a long-term agreement to lease space on at least 2,100 of the towers still under UScellular’s possession, the company said.
While T-Mobile said it doesn’t expect the acquisition to affect its 2024 guidance, it will incur between $2.2 billion and $2.6 billion in costs to fully integrate the wireless provider.
The transaction is expected to close by mid-2025, pending the completion of closing conditions and regulatory approvals.