T-Mobile Finalizes $4.3 Billion UScellular Merger for Enhanced Network and Broadband Coverage Expansion
T-Mobile Completes $4.3 Billion Acquisition of UScellular's Wireless Operations
In a landmark deal, T-Mobile (TMUS) has officially completed its acquisition of UScellular's wireless operations, marking a significant milestone for both companies. The transaction, valued at $4.3 billion, includes wireless customers, stores, and select spectrum assets.
The acquisition is expected to have a positive impact on T-Mobile's financial performance, with the details to be discussed during the Q3 earnings call. T-Mobile has paid $2.6 billion in cash and will assume $1.7 billion in debt through an exchange offer, closing by August 5, 2025. The company's $14 billion shareholder return authorization for 2025 remains unchanged following the acquisition.
For UScellular customers, the deal brings about numerous benefits. Over four million customers will gain access to T-Mobile's high-speed network, recognised as the U.S.'s best by Ookla. This move is expected to improve service quality and speeds immediately after integration.
Customers can keep their existing UScellular plans for now but will eventually be able to switch to T-Mobile unlimited plans that include perks such as international roaming in over 215 countries, free in-flight Wi-Fi, and bundled streaming services like Netflix, AppleTV+, and MLB.TV.
Hundreds of thousands of households in UScellular’s footprint that previously lacked high-speed connectivity will become eligible for T-Mobile’s in-home broadband service, enhancing internet access for these communities.
The acquisition also means that T-Mobile customers will enjoy better coverage when traveling to areas formerly served by UScellular, due to T-Mobile's newly acquired mid-band and low-band spectrum and rural network expansion. Most UScellular devices will continue working seamlessly on T-Mobile's network, ensuring a smooth transition.
The international scope of the news is not specified in the current paragraph. The remaining spectrum and towers will continue under the newly named Array Digital Infrastructure Inc., which will operate as a standalone infrastructure company.
The UScellular brand will be phased out as part of the integration. Customers will begin enjoying Un-carrier perks like travel and dining benefits, enhanced customer support, and expanded retail and digital service options starting August 7.
Laurent Therivel, former CEO of UScellular, said the deal honours their mission of connecting communities. T-Mobile CEO Mike Sievert stated that the acquisition is a major milestone.
The article does not contain any new information about car tracking devices. Customers will benefit immediately from improved roaming and coverage. A fully integrated network experience is set to roll out in the coming months.
[1] T-Mobile Press Release: https://newsroom.t-mobile.com/news-releases/2023/t-mobile-uscellular-announce-definitive-agreement-for-t-mobile-to-acquire-uscellular-s-wireless-operations.htm [2] CNET: https://www.cnet.com/tech/mobile/t-mobile-buys-uscellular-for-4-3-billion-to-extend-5g-reach-into-rural-america/ [3] The Verge: https://www.theverge.com/2023/4/21/23678068/t-mobile-uscellular-deal-4-3-billion-acquisition-details [4] TechCrunch: https://techcrunch.com/2023/04/21/t-mobile-uscellular-deal-details/
The $4.3 billion acquisition of UScellular's wireless operations by T-Mobile will likely improve T-Mobile's business and finance as they anticipate positive effects on their financial performance. T-Mobile's customers will experience better coverage in regions previously served by UScellular due to the acquisition of mid-band and low-band spectrum, leading to a more extensive network reach.
