In an effort to improve wireless connection in underserved, rural parts of America, T-Mobile announced that it will purchase almost all of U.S. Cellular’s operations, including its wireless customers, stores and about 30% of spectrum assets, in a $4.4 billion deal. Although U.S. Cellular will still own its towers, T-Mobile will lease space on at least 2,100 more towers.
The deal, which is expected to close in mid-2025, will provide more coverage and capacity for both company’s customers, said Mike Sievert, T-Mobile CEO, in a statement. It’s hoped the consolidation will offer additional choices for those with little to no broadband connectivity or those who only have access to “expensive and limited plans from AT&T and Verizon.”
U.S. Cellular customers are able to choose whether they want to stay on their current plans or do a free transfer to a T-Mobile plan. New benefits will include streaming and free international data roaming.
T-Mobile will finalize the deal with a combination of cash and assuming $2 billion of debt. “To the extent any debtholders do not participate in the exchange, their bonds will continue as obligations of U.S. Cellular and the cash portion of the purchase price will be correspondingly increased,” a news release said.
