T-Mobile has announced its plans to acquire most of U.S. Cellular in a $4.4 billion deal.
This acquisition would give T-Mobile an additional 4 million customers, access to hundreds of brick-and-mortar stores and an expanded presence in rural areas.
The big picture: T-Mobile’s spectrum rights, which are valuable federal licenses that allow companies to transmit mobile signals, will also be expanded through this deal.
- The agreement is expected to close in the middle of next year.
- As part of the agreement, U.S. Cellular will retain some of its own spectrum rights and cellular towers.
Flashback: T-Mobile has a history of pursuing high-profile acquisitions to drive growth. In 2012, it merged with Metro PCS, increasing its customer base significantly.
- In 2020, T-Mobile acquired Sprint in a $26.5 billion deal.
What we’re watching: Customers currently using U.S. Cellular services will automatically become customers of T-Mobile once the agreement is finalized.
What they’re saying: “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,” said T-Mobile CEO Mike Sievert in a statement.
