T-Mobile Buying UScellular

T-Mobile announced a deal to purchase the bulk of UScellular, a move that will help it compete in rural areas and eliminate a major regional carrier.

Rumors started swirling three weeks ago that T-Mobile and Verizon could be interested in carving up UScellular. At the time, it was believed a deal with T-Mobile was closer, with a likely value of more than $2 billion. In contrast, a deal with Verizon was seen as uncertain.

T-Mobile says it has reached a deal with UScellular to pay roughly $4.4 billion for UScellular assets, “in a combination of cash and up to $2.0 billion of debt to be assumed by T-Mobile through an exchange offer to be made to certain UScellular debtholders prior to closing.”

The deal will give T-Mobile control of “substantially all of UScellular’s wireless operations,” including the company’s customers and “certain specified spectrum assets.”

T-Mobile says UScellular’s spectrum help it improve its rural coverage.

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

“T-Mobile’s purchase and integration of UScellular’s wireless operations will provide best-in-class connectivity to rural Americans through enhanced nationwide coverage and service offerings at more compelling price points,” said Laurent Therivel, CEO of UScellular. “The transaction provides our customers access to better coverage and speeds, as well as unlimited texting in more than 215 countries, content offers, device upgrades and other T-Mobile benefits.”

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