T-Mobile Making $4.4 Billion UScellular Acquisition

T-Mobile is stressng the consumer benefits of its proposed $4.4 billion purchase of UScellular wireless assets.

T-Mobile's Mike Sievert

T-Mobile on Tuesday confirmed that it will buy "substantially all" wireless operations from UScellular. The self-described "un-carrier" is getting certain spectrum licenses as well as UScellular's customers and stores. UScellular will keep its cell towers as well as some of its spectrum.

T-Mobile is paying for the deal partly through cash and assuming $2 billion in UScellular debt. The deal will close in the middle of 2025 following regulatory approvals, T-Mobile said.

Implications of UScellular Acquisition

T-Mobile in its announcement pointed to how the UScellular acquisition will improve its rural footprint.

“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," T-Mobile CEO Mike Sievert said. "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.”

The company stated that UScellular customers get to choose if they remain on their existing plans or adopt a T-Mobile plan without a cost to switch.

No Verizon?

Related:T-Mobile, Verizon Eye Split US Cellular Acquisition

T-Mobile confirmed reports that it was in talks to buy part of UScellular. However, the earlier reports estimated the cost of a UScellular acquisition to be about $2 billion, one-half of what T-Mobile has agreed to pay.

According to the earlier reports, UScellular was looking to carve itself up to both T-Mobile and Verizon. Selling to two different parties could help the deals pass the scrutiny of federal regulators, sources said. But a Verizon deal was a longer way off than that of T-Mobile, sources said.

T-Mobile purchased MetroPCS in 2023 and Sprint in 2020.