Bellevue, Wash. – May 28, 2024 – In a major move set to reshape the wireless landscape, T-Mobile (NASDAQ: TMUS) and UScellular (NYSE: USM) announced today that T-Mobile has agreed to acquire substantially all of UScellular’s wireless operations. This acquisition includes UScellular’s wireless customers, stores, and specific spectrum assets. The transaction is expected to close in mid-2025, pending regulatory approvals and customary closing conditions.
Expanding the 5G Network
Upon closing, this acquisition will significantly expand T-Mobile’s already leading 5G network, particularly benefiting UScellular’s customers in underserved rural areas. Millions of UScellular customers will transition from a limited roaming experience to full nationwide access on the country’s largest and fastest 5G network. This expansion promises a superior connectivity experience, enhancing both coverage and speed.
Enhanced Plans and Savings
UScellular customers will have the opportunity to switch to T-Mobile’s value-packed plans without any switching costs. These plans include popular Un-carrier benefits such as streaming services and free international data roaming. Customers who switch could save hundreds of millions of dollars annually. Additionally, T-Mobile’s 5G Unlimited 55+ plans will become available to eligible UScellular customers, offering increased savings and benefits.
Increased Competition and Choice
The acquisition is set to shake up the wireless market by providing more choices and increasing competition, especially in areas currently dominated by expensive and limited plans from AT&T and Verizon. This move is expected to spur competition and expand T-Mobile’s fast-growing home broadband offering and fixed wireless products to communities that lack competitive broadband options. By tapping into the combined spectrum and wireless assets, T-Mobile aims to bridge the digital divide for hundreds of thousands of customers in UScellular’s footprint.
Proven Integration Success
T-Mobile has a strong track record of successful integrations, such as the notable mergers with MetroPCS in 2013 and Sprint in 2020. These integrations have been recognized for enhancing competition and delivering value to millions of consumers. Leveraging this proven playbook, T-Mobile is set to deliver exceptional value and experiences to more people across the country, compelling competitors to follow suit.
Financial Details and Synergies
T-Mobile will pay approximately $4.4 billion for the assets being acquired from UScellular, using a combination of cash and up to $2.0 billion of debt to be assumed by T-Mobile. Following the closing, UScellular will retain ownership of its other spectrum and towers, with T-Mobile entering into a long-term lease arrangement for space on at least 2,100 additional towers. T-Mobile anticipates cost synergies of approximately $1.0 billion in effective annual run rate upon integration, with total integration costs estimated between $2.2 billion and $2.6 billion. These synergies will be reinvested to enhance consumer choice, quality, and competition in the wireless industry.
What This Means for Customers
- UScellular Customers: Transition from a limited roaming experience to full nationwide access on T-Mobile’s expansive 5G network. Enjoy potential savings and access to T-Mobile’s Un-carrier benefits, including streaming services and free international data roaming.
- T-Mobile Customers: Benefit from increased coverage and performance in areas previously covered by UScellular, enhancing their overall network experience.
- Wireless Consumers: Gain from the increased competition and choice in the market, with more affordable and robust service options becoming available.
Conclusion
This acquisition marks a significant step forward in T-Mobile’s mission to provide superior connectivity and value to consumers across the country. By integrating UScellular’s operations, T-Mobile will extend its industry-leading 5G network to more areas, particularly underserved rural regions, fostering enhanced connectivity, choice, and competition in the wireless market. Stay tuned for more updates as this transformative deal progresses towards its expected closing in mid-2025.
