T-Mobile announced yesterday it will acquire most of US Cellular's wireless operations, including around 4.5 million customers and 620 stores, in a $4.4B deal. The transaction, which combines cash and up to $2B in debt, aims to improve coverage and speed in rural areas by providing US Cellular customers with access to T-Mobile’s 5G network.
The deal includes US Cellular retaining 70% of its spectrum (the invisible radio frequencies that wireless signals travel over) and 4,400 telecom towers, while leasing about 2,100 towers to T-Mobile. The transaction has been approved by US Cellular's board and is expected to close by mid-2025, pending regulatory approval.
The deal comes after T-Mobile purchased Mint Mobile owner Ka'ena Corporation earlier this month and merged with Sprint in 2020. The acquisition is unlikely to face significant regulatory challenges, unlike AT&T's failed $39B merger attempt with T-Mobile in 2011.
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