T-Mobile Agrees to Acquire US Celluar In $4.4 Billion Deal

By FrumNews.com 

T-Mobile’s push to be on par (and as large as) with Verizon and AT&T is proceeding. On Tuesday, T-Mobile agreed to buy US Celluar’s wireless operations, including customers, stores and 30% of its spectrum assets, in a deal valued at $4.4 billion.

Unlike most MVNO operators (like Mint, Ultra and Ting), which rely on the “big three” carriers for service, US Celluar is a regional carrier with its own network. It is the fifth-largest wireless carrier (behind Dish) in the U.S., with 4.6 million subscribers.

T-Mobile claims that the deal would lower prices and enhance service for its rural customers, and a more competitive alternative to the nation’s two largest wireless carriers, AT&T and Verizon.

“With this deal, T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of US Cellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” said Mike Sievert, T-Mobile CEO. “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.”

Over the decades, mergers have become commonplace among wireless network providers, acquiring spectrum rights and smaller competitors. In 2020, T-Mobile acquired Sprint and MetroPCS in 2013. Just a month ago, T-Mobile acquired Mint. In 2013, AT&T, which merged with Cingular Wireless in 2004, acquired Alltel and Cricket in 2013.

Recently, a class action lawsuit to undo the massive Sprint merger just got the green light to move forward. The plaintiffs, who are Verizon and AT&T customers, are suing the telecom giant. They argue that the merger between T-Mobile and Sprint has negatively impacted them by increasing service prices on other networks and are seeking billions of dollars in damages and aim to have the merger undone through the court system.

The acquisition is expected to close by mid-2025 and will be subject to regulatory approvals.