T-Mobile, one of the nation’s largest wireless service providers, announced Tuesday that it will acquire most of US Cellular in a $4.4 billion deal.
The deal would give T-Mobile 4 million more customers, hundreds of brick-and-mortar stores and broader reach in rural areas. The move would also expand T-Mobile’s spectrum rights, a valuable federal license that allows companies to transmit mobile signals.
The deal is expected to close in the middle of next year, T-Mobile said.
“While customers of both companies will benefit from greater coverage and capacity through our combined footprint, our competitors will be forced to keep pace – and even more consumers will benefit,” said Mike Sievert , CEO of T-Mobile, in a statement.
After the deal, US Cellular will retain some of its spectrum rights and cell towers, T-Mobile said.
The acquisition will offer customers a more competitive alternative to the country’s two largest mobile operators: AT&T and Verizon, T-Mobile said.
“By leveraging the additional capacity and coverage created through the combination of spectrum and wireless assets, T-Mobile will drive competition,” T-Mobile said in a statement.
Mike Sievert, CEO of T-Mobile, speaks during a joint T-Mobile and SpaceX event, August 25, 2022, in Boca Chica Beach, Texas.
Michael Gonzalez/Getty Images, FILE
For years, T-Mobile has made high-profile acquisitions to accelerate its growth.
In 2012, T-Mobile merged with Metro PCS, increasing T-Mobile’s customer base by about a third. In 2020, T-Mobile acquired Sprint in a $26.5 billion deal, which combined the nation’s third and fourth wireless carriers at the time.
“The integrations of MetroPCS in 2013 and Sprint in 2020 have been considered two of the most successful merger combinations in wireless history, resulting in pro-competition changes benefiting millions of consumers,” said T-Mobile.
Customers currently with US Cellular will automatically become T-Mobile customers once the deal is finalized, the release said.
ABC News
