T-Mobile agreed to acquire substantially all of UScellular’s wireless operations, including its wireless customers and stores, as well approximately 30% of its spectrum across certain bands. The combination will add millions of UScellular customers, many of whom are in rural areas, to T-Mobile’s 5G network. Conversely, T-Mobile customers will also get access to UScellular’s network in areas that previously had limited coverage.
Under the deal, T-Mobile will pay approximately $4.4 billion, consisting of cash and up to $2.0 billion of assumed debt. UScellular will retain its other spectrum and towers, while T-Mobile will lease space on 2,100 towers. T-Mobile anticipates $1.0 billion in annual cost synergies and plans to reinvest these savings to enhance consumer options and competition.
- T-Mobile’s acquisition cost: $4.4 billion (cash and up to $2.0 billion in assumed debt).
- UScellular retains ownership of its certain spectrum and towers. T-Mobile to lease space on 2,100 towers.
- No impact on T-Mobile’s 2024 guidance or shareholder return program.
- Expected annual cost synergies: $1.0 billion.
- Integration cost: Estimated between $2.2 billion to $2.6 billion.
- Reinvestment of synergies to improve consumer choice and competition.
“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” said Mike Sievert, CEO of T-Mobile. “As customers from both companies will get more coverage and more capacity from our combined footprint, our competitors will be forced to keep up – and even more consumers will benefit. The Un-carrier is all about shaking up wireless for the good of consumers and this deal is another way for us to continue doing even more of that.”
