T-Mobile revealed it is acquiring nearly all of U.S. Cellular’s assets, a deal valued at approximately $4.4 billion.
In a statement on Tuesday, T-Mobile announced it would assume control of U.S. Cellular’s wireless operations, customers, stores, and certain spectrum assets. The $4.4 billion valuation encompasses both cash and $2 billion in U.S. Cellular debt.
Mike Sievert, CEO of T-Mobile, remarked in a press release that the transaction would be mutually advantageous for both entities.
“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,” he stated.
“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,” he added. “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.”
U.S. Cellular Chairman LeRoy T. Carlson Jr. commented in a press release from the company that the decision was the result of a comprehensive strategic review and was deemed the most favorable path forward.
“In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile,” he said. “T-Mobile has the resources to provide UScellular’s customers with an unparalleled network experience, lower prices, and higher-quality services.”
Both companies emphasized the improvement of connectivity the merger would bring, particularly for rural residents.
T-Mobile indicated that current U.S. Cellular customers will have the choice to retain their existing plans or transition to T-Mobile’s offerings, with enhancements available in either scenario.
