T-Mobile Announces Acquisition of U.S. Cellular in $4 Billion Deal

T-Mobile, one of the nation’s largest wireless providers, announced on Tuesday that it will acquire most of U.S. Cellular in a $4.4 billion deal.

The agreement would grant T-Mobile an additional 4 million customers, hundreds of brick-and-mortar stores and wider reach in rural areas. The move would also expand T-Mobile’s spectrum rights, a valuable federal license that allows firms to transmit mobile signals.

The deal is expected to close in the middle of next year, T-Mobile said.

“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,” Mike Sievert, CEO of T-Mobile, said in a statement.

After the agreement, U.S. Cellular will retain some of its spectrum rights and cellular towers, T-Mobile said.

The acquisition will provide customers with a more competitive alternative to the nation’s two largest wireless carriers: AT&T and Verizon, T-Mobile said.

“By tapping into the additional capacity and coverage created through the combined spectrum and wireless assets, T-Mobile will spur competition,” T-Mobile said in a statement.

For years, T-Mobile has pursued high-profile acquisitions as a means of accelerating growth.

In 2012, T-Mobile merged with Metro PCS, increasing T-Mobile’s customer base by roughly one third. In 2020, T-Mobile acquired Sprint in a $26.5 billion deal, which at the time combined the nation’s third- and fourth-largest wireless carriers.

“The integrations of MetroPCS in 2013 and Sprint in 2020 have been noted as two of the most successful merger combinations in wireless history that resulted in competition-enhancing shifts benefiting millions of consumers,” T-Mobile said.

Customers currently with U.S. Cellular will automatically become customers of T-Mobile once the agreement is finalized, the statement said.

T-Mobile, one of the largest telecommunications companies in the United States, has recently announced its acquisition of U.S. Cellular in a deal worth $4 billion. This acquisition marks a significant milestone for T-Mobile as it continues to expand its presence in the highly competitive wireless market.

The acquisition of U.S. Cellular will allow T-Mobile to further strengthen its position in the wireless industry by gaining access to U.S. Cellular’s customer base and network infrastructure. With this acquisition, T-Mobile will be able to enhance its network coverage and capacity, providing customers with improved service and connectivity.

In addition to expanding its network capabilities, the acquisition of U.S. Cellular will also enable T-Mobile to increase its market share and compete more effectively with other major wireless carriers such as Verizon and AT&T. By combining forces with U.S. Cellular, T-Mobile will be able to offer customers a wider range of products and services, including faster data speeds, better coverage, and more competitive pricing.

T-Mobile’s CEO, John Legere, expressed his excitement about the acquisition, stating that it will allow the company to continue its mission of providing customers with the best wireless experience possible. He also emphasized that the acquisition of U.S. Cellular aligns with T-Mobile’s commitment to innovation and customer satisfaction.

The $4 billion deal is expected to be finalized in the coming months, pending regulatory approval. Once the acquisition is complete, T-Mobile will begin integrating U.S. Cellular’s operations into its own network, with the goal of providing customers with a seamless transition and improved service.

Overall, the acquisition of U.S. Cellular represents a significant strategic move for T-Mobile as it looks to solidify its position in the wireless market and continue its growth trajectory. With this deal, T-Mobile is poised to become an even stronger player in the telecommunications industry, offering customers a wider range of services and a more robust network infrastructure.