T-Mobile Acquires UScellular for $4.4 billion

T-Mobile continues to consolidate its presence as a strong wireless carrier in the US. Today, the giant announced it is buying UScellular for $4.4 billion in cash and assumed debt. The carrier is essentially acquiring “substantially all of UScellular’s wireless operations”, the two companies have noted.

T-Mobile Buys UScellular and Further Enhances its 5G Network

The acquisition will close in mid-2025. The UScellular customers will have full access to T-Mobile’s “largest and fastest 5G network” in the country, enjoying a “superior connectivity experience” without needing to employ roaming when going out of the cellular coverage area.

The customers, on the other hand, will get access to UScellular’s network in areas that previously had limited coverage. They will also benefit from the enhanced performance from UScellular thanks to the addition of the acquired spectrum.

T-Mobile curiously states that this merger will make US users benefit from “enhanced choice and competition”. However, despite the benefits, we all know that this effectively reduces competition as there is one less carrier in this game with UScellular being absorbed by the merger.

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It is worth noting that UScellular will have the option to stay on their current plans. Alternatively, they can move to the unlimited T-Mobile plan of their choice with no additional costs

Mike Sievert, CEO of T-Mobile, said:

“With this deal, T-Mobile can extend the superior Un-carrier value and experiences that weā€™re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network. Customers from both companies will get more coverage and more capacity from our combined footprint. Our competitors will be forced to keep up ā€“ and even more consumers will benefit. The Un-carrier is all about shaking up wireless for the good of consumers and this deal is another way for us to continue doing even more of that.”

Laurent Therivel, CEO of UScellular, said:

“T-Mobileā€™s purchase and integration of UScellularā€™s wireless operations will provide best-in-class connectivity to rural Americans through enhanced nationwide coverage and service offerings at more compelling price points. The transaction provides our customers access to better coverage and speeds, as well as unlimited texting in more than 215 countries, content offers, device upgrades, and other T-Mobile benefits.”

We are curious to see how the landscape in the US will change in the coming months.

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