T-Mobile To Spend Over $4 Billion To Buy Majority of US Cellular's Wireless Operations—Here's Why

By Giuliano De Leon

May 28, 2024 05:44 PM EDT

T-Mobile is prepared to spend more than $4 billion just to buy the majority of US Cellular's wireless operations. The telco giant also said it would purchase certain spectrum assets. T-Mobile's latest effort is expected further to solidify the broadband industry in the United States. 

T-Mobile To Spend Over $4 Billion To Buy Majority of US Cellular Wireless Operations—Here's Why
A T-Mobile shop in Victoria on September 8, 2009 in London, England. Mobile phone companies Orange and T-Mobile have anounced plans to merge their United Kingdom operations. This will create the UK's biggest mobile operator with a customer base of 28 million users.
(Photo : Peter Macdiarmid/Getty Images)

T-Mobile To Buy Most of US Cellular's Wireless Operations

According to The Associated Press' latest report, T-Mobile's new deal with US Cellular, a subsidiary of Telephone and Data Systems Inc., will allow it to purchase the majority of the firm's wireless operations.

T-Mobile and US Cellular said the deal will include $2 billion in assumed debt and cash. The telco giant will also acquire 30% of the company's spectrum.

Forbes reported that this would help T-Mobile improve and expand coverage for customers located in rural areas. The US Cellular will retain 70%, allowing it to monetize the remaining assets opportunistically.

The two companies said US Cellular consumers can keep their current wireless plans but can also switch to T-Mobile plans. The latest T-Mobile-U.S. Cellular partnership is expected to be finalized in mid-2025, pending regulatory approval.

Read Also: AT&T Vows Identity Theft Protection for 75 Million Customers Affected By Recent Data Breach

What T-Mobile, US Cellular Deal Means To Customers

T-Mobile CEO Mike Sievert promised consumers that the new deal would create a better experience for all, especially since it would bring more capacity and coverage.

This is because US Cellular clients will soon be able to access T-Mobile's 5G network, which will give them faster speeds and more efficient coverage. The new partnership would greatly benefit those who live in underserved rural locations in the United States.

US Cellular Chair LeRoy Carlson Jr. said that they are pretty confident when it delivers its mission, which requires a level of scale and investment that is best achieved by combining its wireless operations with T-Mobile's.

Related Article: AT&T, Verizon, and T-Mobile to Pay $10 Million Settlement Over Misleading Claims About 'Unlimited' Plans

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics