Eric Zeman / Android Authority
TL; DR
- T-Mobile has announced that it plans to acquire most of US Cellular in a $4.4 billion deal.
- The deal includes the regional wireless carrier's customers, stores and about 30% of its spectrum assets.
- US Cellular customers can choose to keep their current plan or switch to a T-Mobile plan.
T-Mobile and US Cellular announced Tuesday that they are entering into an agreement. The deal will result in T-Mobile acquiring most of US Cellular.
In a press releaseUS Cellular announced that it has entered into an agreement with T-Mobile to sell its wireless business and spectrum assets for $4.4 billion. The deal is said to include cash and “up to approximately $2 billion in assumed debt.” According to US Cellular, up to $100 million of this money is contingent on meeting certain financial and operational criteria between signing and closing of the deal.
The deal will allow T-Mobile to receive the regional wireless carrier's customers, stores and approximately 30% of its spectrum assets. In addition, T-Mobile is entering into a licensing agreement that makes it possible to rent space on more than 2,000 towers.
There were previous rumors that T-Mobile and Verizon could split US Cellular's operations to prevent regulators from blocking the deal. But there's no word yet from Verizon. US Cellular and T-Mobile expect to complete the deal by mid-2025.
What does this mean for US mobile customers?
In a separate press release from T-Mobile, the Un-carrier says the deal will help improve coverage in rural areas for its customers. At the same time, US Cellular customers will gain access to T-Mobile's network, improving 5G connectivity for “underserved rural areas.”
T-Mobile CEO Mike Sievert said the following about the deal:
This deal allows T-Mobile to extend the superior Un-carrier value and experiences we are known for to millions of US mobile customers, offering them cheaper, value-priced plans and better connectivity on our best-in-class nationwide 5G network . As customers of both companies gain more coverage and more capacity from our combined footprint, our competitors will be forced to keep up – and even more consumers will benefit.
If you're a US Cellular customer, T-Mobile says you can keep your current plan. But these customers will also have the option to switch to “an unlimited T-Mobile subscription of their choice, without switching costs.”
This news comes just weeks after T-Mobile announced its acquisition of Ka'ena Corporation. That deal brought Mint Mobile, Ultra Mobile and Plum into the fold.