T-Mobile agrees to acquire UScellular in deal worth $4.4 billion

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The deal, if approved, will allow T-Mobile to lease space on 2,100 towers operated by UScellular.

By: Brad Randall, Broadband Communities

T-Mobile will acquire “substantially all” of UScellular’s wireless operations, including the company’s wireless customers, stores, and some of the firm’s spectrum assets.

The agreement, still subject to regulatory approval, will lead to UScellular’s millions of customers being presented with a choice: to either stay on their current plan or convert to a T-Mobile plan without being hit with switching costs.

“Upon closing, T-Mobile’s leading 5G network will expand to provide millions of UScellular customers, particularly those in underserved rural areas,” T-Mobile’s May 28 announcement stated.

In comments included with T-Mobile’s announcement, Laurent Therivel, the CEO of UScellular, said the deal will provide “best-in-class connectivity to rural Americans.”

“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,” Therivel said.

The terms of the deal include UScellular retaining ownership of thousands of cell towers. However, T-Mobile will be allowed to lease space UScellular’s towers if the deal is approved.

T-Mobile’s announcement hailed the deal as one that “will create a much-needed choice for wireless in areas with expensive and limited plans from AT&T and Verizon.”

The deal to acquire UScellular includes a combination of cash and $2.0 billion of debt, which will be assumed by T-Mobile through an exchange offer that will be made to some UScellular debtholders before closing, according to T-Mobile’s release.

“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 Mike Sievert, the CEO of T-Mobile.

Sievert said T-Mobile will be able to offer UScellular’s customers lower-priced plans and better coverage with the company’s 5G network, according to the announcement.

“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,” Sievert said.

The deal, which is also subject to closing conditions being met, is expected to close in 2025, according to T-Mobile’s release.