T-Mobile to Acquire U.S. Cellular’s Wireless Operations in $4.4 Billion Deal

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T-Mobile is set to acquire U.S. Cellular’s wireless operations and certain spectrum assets in a deal valued at $4.4 billion, further consolidating the industry landscape.

Under the agreement, T-Mobile will acquire U.S. Cellular’s wireless operations and about 30% of spectrum assets across various spectrum bands. Additionally, T-Mobile will enter a new master license agreement covering more than 2,000 towers and extend lease terms for approximately 600 towers where T-Mobile is already a tenant.

“Bringing together UScellular’s network resources with ours will enable us to fill gaps in connectivity that will create a better experience for all of our customers with more coverage and more capacity,” stated T-Mobile CEO Mike Sievert.

As part of the deal, U.S. Cellular customers will gain access to T-Mobile’s 5G network, promising enhanced coverage and speed.

In response to rising competition and the escalating capital intensity required to stay abreast of evolving technologies, U.S. Cellular Chair LeRoy Carlson Jr. emphasized the strategic necessity of integrating wireless operations with T-Mobile.

The transaction involves a combination of cash and up to approximately $2 billion of assumed debt, with up to $100 million of the cash contingent on achieving specific financial and operational milestones between the deal’s signing and closing.

U.S. Cellular will retain about 70% of its spectrum portfolio across multiple spectrum bands.

The deal, unanimously approved by the boards of United States Cellular Corp. and Telephone and Data Systems Inc., a majority shareholder of U.S. Cellular, is slated to close in mid-2025.

Shares of U.S. Cellular surged 13% before the opening bell on Tuesday, while shares of T-Mobile remained unchanged.

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