T-Mobile signs a $4.4 billion deal to buy most of US Cellular

4 months ago

T-Mobile has agreed to purchase parts of regional wireless carrier US Cellular in a $4.4 billion deal that includes US Cellular’s wireless customers, stores, and approximately 30 percent of spectrum assets. US Cellular will retain ownership of its towers and “approximately 70 percent of its spectrum portfolio across several spectrum bands,” with T-Mobile entering a long-term arrangement to lease space on more than 2,000 towers.

According to T-Mobile, the deal will improve nationwide coverage for US Cellular wireless customers while providing better 5G connectivity in “underserved rural areas” where T-Mobile sometimes struggles compared to AT&T and Verizon.

In the announcement, T-Mobile CEO Mike Sievert 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.

T-Mobile says that US Cellular customers can choose to stay on their current plan or move to an unlimited T-Mobile plan “of their choosing with no switching costs.”

The transaction is expected to close in mid-2025, provided regulators can be convinced to allow it. It was previously rumored that US Cellular’s business would be carved up between T-Mobile and Verizon to deter regulators from blocking the deal, according to The Wall Street Journal, but Verizon hasn’t yet announced anything related to US Cellular.

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