T-Mobile has announced its plans to acquire most of U.S. Cellular in a significant $4.4 billion transaction. This deal, announced on May 28, 2024, includes the acquisition of U.S. Cellular’s stores, certain spectrum assets, and its customer base.
Shares of U.S. Cellular surged by 6% following the announcement, reflecting investor enthusiasm about the deal’s prospects. T-Mobile also experienced a slight increase in its stock, rising over 1% during Tuesday’s trading session.
As part of the acquisition, T-Mobile will obtain approximately 30% of U.S. Cellular’s wireless spectrum. The strategic use of this spectrum is aimed at enhancing coverage in rural areas and improving connectivity for U.S. Cellular customers nationwide. T-Mobile has expressed its intent to allow U.S. Cellular customers to retain their existing service plans or transition to T-Mobile plans, ensuring a smooth integration process.
U.S. Cellular will retain control over 70% of its wireless spectrum and towers. Additionally, it will lease space on at least 2,100 more towers to T-Mobile, which also plans to sign new long-term leases on around 2,015 U.S. Cellular-owned towers and extend existing leases on about 600 others.
This arrangement is expected to provide U.S. Cellular with a robust anchor tenant for its infrastructure, securing significant operational stability for at least 15 years following the closure of the deal.
The acquisition is part of T-Mobile’s ongoing expansion strategy, following its previous acquisitions, including the $1.35 billion purchase of Ka’ena Corporation, parent company of Mint Mobile, and its major merger with Sprint in 2020 valued at $26 billion.
The deal, subject to regulatory approval, is anticipated to close by mid-2025. This move is expected to reshape the competitive landscape of the U.S. telecommunications sector, enhancing T-Mobile’s capabilities and reach across the nation.