T-Mobile Is Set To Acquire UScellular Wireless Operations In A $4.4 Billion Deal

As the world becomes ever more connected and wireless technology becomes the call of the day, thanks to internet access, businesses are pushing hard to enhance their offerings, products or services.

This includes striking partnerships with other companies or making deals to acquire them to boost their infrastructure, capabilities and reach.

Keeping to this thought, T-Mobile made an announcement that’s set to boost its offerings and increase its customer base.

So, what did the company reveal? Let’s explore!
 

What Did T-Mobile Announce?

 

• As per a press release published on its website, T-Mobile announced it had reached an agreement with UScellular to acquire a large part of UScellular’s wireless operations.

• This move will include gaining control over UScellular’s wireless customers and stores, along with some spectrum assets.

• Once the deal is closed, T-Mobile will be able to bring its leading 5G network to millions of UScellular customers, especially ones in rural areas.

• This will bring them “a superior connectivity experience, moving from a roaming experience outside of the UScellular coverage area to full nationwide access on the country’s largest and fastest 5G network.”

• Furthermore, they will also be able to gain access to Un-carrier’s cost-effective value plans and its benefits, perks and customer support.

• On the other hand, exisiting T-Mobile customers will gain access to UScellular’s network, providing connectivity in areas that previously offered limited coverage.

• As per the release, “wireless consumers across the country will benefit from the enhanced choice and competition that this proposed transaction will create.”

• The move is set to benefit customers of T-Mobile and UScellular, as well as others by offering best-in-class network experiences, value-packed plans, more choice and increased competition and T-Mobile's track record of bringing companies together to offer enhanced connectivity, choice and value for consumers.

 

What Are The Details Of The Agreement?

 

• The deal will see T-Mobile pay approximately $4.4 billion to acquire the assets from UScellular. The transaction will consist of a combination of cash and up to $2 billion in assumed debt.

• Post closing of the agreement, UScellular will retain ownership of its other spectrum and related towers, of which T-Mobile will lease space on at least 2,100 additional towers being retained, as part of a long-term arrangement.

• “T-Mobile expects this transaction will yield approximately $1.0 billion in effective total opex and capex annual run rate cost synergies upon integration, with total cost to achieve the integration currently estimated at between $2.2 billion to $2.6 billion.”

• The deal is subject to the satisfaction of customary closing conditions and regulatory approvals and is expected to close in mid-2025.

 

What Did Stakeholders Say?

 

• Mike Sievert, CEO of T-Mobile, said, “With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’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.”

• “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. 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-Mobile’s purchase and integration of UScellular’s wireless operations will provide best-in-class connectivity to rural Americans through enhanced nationwide coverage and service offerings at more compelling price points.”

• [Contd.] “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.”

Do you think this move by T-Mobile will help it capture a bigger market share? Do you think its competitors need to make similar moves?

Let us know in the comments below!