T-Mobile buying US Cellular; says rural coverage will improve

It’s this morning been announced that T-Mobile is buying most of US Cellular, in a deal said to be worth a total of $4.4B.

T-Mobile says that the buyout will enable it to provide better rural coverage to its existing customers, and that US Cellular subscribers will get full access to the country’s fastest 5G network …

T-Mobile announced the acquisition this morning.

T-Mobile (NASDAQ: TMUS) and UScellular (NYSE: USM) today announced that T-Mobile has agreed to acquire substantially all of UScellular’s wireless operations. This includes UScellular’s wireless customers and stores, as well as certain specified spectrum assets.

Upon closing, T-Mobile’s leading 5G network will expand to provide millions of UScellular customers, particularly those in underserved rural areas, a superior connectivity experience, moving from a roaming experience outside of the UScellular coverage area to full nationwide access on the country’s largest and fastest 5G network.

Additionally, UScellular customers will have the ability to fully participate in the Un-carrier’s industry-leading value-packed plans filled with benefits and perks, and best-in-class customer support with the opportunity to save UScellular customers hundreds of millions of dollars.

T-Mobile customers will also get access to UScellular’s network in areas that previously had limited coverage and the benefit of enhanced performance throughout UScellular’s footprint from the addition of the acquired UScellular spectrum to T-Mobile’s network.

One fewer cellular company also increases choice and competition, apparently.

And wireless consumers across the country will benefit from the enhanced choice and competition that this proposed transaction will create.

T-Mobile previously merged with Sprint back in 2020, with all Sprint branding erased later the same year.

The Uncarrier says that US Cellular customers could save money by switching to its own plans – but will not be forced to do so.

UScellular customers will have the option to stay on their current plans or move to an unlimited T-Mobile plan of their choosing with no switching costs, which include beloved Un-carrier benefits such as streaming and free international data roaming. If UScellular customers choose to switch to T-Mobile, they could save hundreds of millions of dollars combined annually.

US Cellular will retain some of its spectrum, with T-Mobile entering into a license deal for around 2,000 of the company’s towers.

Photo: T-Mobile