T-Mobile is buying U.S. Cellular’s wireless operations and certain spectrum assets in a deal valued at $4.4 billion, according to the Associated Press.
T-Mobile would get more than 4 million new customers and control of U.S. Cellular’s wireless operations and about 30% of spectrum assets across several spectrum bands. T-Mobile would also enter into a new master license agreement on more than 2,000 towers and extend the lease term for the approximately 600 towers where it is already a tenant.
The news may signal the start of more consolidation in an industry with fewer players than ever.
The transaction includes a combination of cash and up to about $2 billion of assumed debt. Up to $100 million of the cash component is contingent on hitting certain financial and operational metrics between the deal’s signing and closing.
U.S. Cellular will keep about 70% of its spectrum portfolio across several spectrum bands.
The deal has been unanimously approved by the boards of United States Cellular Corp. and Telephone and Data Systems Inc., which is a majority shareholder of U.S. Cellular. It is expected to close in mid-2025.
