T-Mobile, the nation’s second-biggest mobile carrier, has announced plans to acquire most of US Cellular in a deal worth $4.4 billion. This acquisition includes the regional wireless carrier’s customers, stores, and about 30% of its spectrum assets. The deal involves cash and as much as $2 billion in debt.
T-Mobile CEO Mike Sievert stated that the deal will create a better experience for all customers with more coverage and more capacity. US Cellular customers will have the option to keep their current plans or switch to a T-Mobile plan. The company plans to use US Cellular’s wireless spectrum to improve coverage in rural areas while offering better connectivity to US Cellular customers around the United States.
The transaction is expected to close in the middle of next year, pending regulatory approvals. This acquisition follows T-Mobile’s $26.5 billion takeover of Sprint in 2020, further consolidating its position in the wireless industry. Despite the size of the deal, it is unlikely to face the same regulatory hurdles that AT&T faced in 2011 when it scrapped its proposed $39 billion takeover of T-Mobile.
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