Summary

  • T-Mobile is set to acquire assets from US Cellular for $4.4 billion, expanding coverage in rural areas.
  • The deal includes only wireless operations and certain spectrum products, with US Cellular maintaining ownership of the rest.
  • Increasing competition at the top end of the mobile carrier market has smaller companies like US Cellular seeking to divest their assets.



For years, T-Mobile has branded itself as an “un-carrier,” boasting that its mobile service plans are flexible enough to suit any budget or lifestyle. To those locked into a contract with another service provider, this offer was immediately attractive. However, T-Mobile has grown exponentially since its humble beginnings as VoiceStream Wireless back in the 90s, rolling out more plan options with revised terms and conditions. As it expands, the company now says that it is reeling in another business to help with its initiatives.

T-Mobile sign hanging in an office building.

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T-Mobile has announced that it is forking over about $4.4 billion to acquire assets from US Cellular. The deal is officially set to close in 2025, pending regulatory approval, and T-Mobile will absorb up to $2 billion in debt from the company. As a result of the acquisition, T-Mobile says it will be in a better position to expand coverage – specifically in rural areas – to existing US Cellular customers.


How much is T-Mobile really getting out of its deal?

It’s worth noting, however, that the company will only be acquiring US Cellular’s wireless operations and certain spectrum products – this does not mean all of them. In fact, US Cellular will maintain ownership over the rest of its spectrum assets and its towers. To this extent, T-Mobile will lease space on more than 2,100 of US Cellular’s towers. The company claims that its acquisition will ultimately benefit all mobile service customers by providing them with more choice.



However, it’s not just T-Mobile that is attempting to capitalize on US Cellular’s assets. Verizon is rumored to be making a bid as well, but its deal is expected to take longer than the one in the works with T-Mobile. US Cellular is thought to be divesting its assets due to increasing competition in the mobile carrier market, as well as the rising fees associated with acquiring wireless licenses. With competitors like T-Mobile and Verizon making it more difficult for customers to exit their contractual agreements, it’s becoming increasingly challenging for smaller companies to keep up. As of May 2024, US Cellular had a customer base of about four million people across 21 states, as well as a market value of $3 billion.