T-Mobile will acquire the American wireless company for $4.4 billion

T-Mobile has agreed to acquire substantially all of UScell’s wireless business.

This applies to UScell ​​wireless customers and stores, as well as certain spectrum-specific assets. Once closed, T-Mobile’s leading 5G network will be expanded to provide millions of U.S. mobile customers, especially those in underserved rural areas, with excellent connectivity, moving from roaming beyond U.S. mobile coverage to full nationwide access via the largest and fastest 5G network. Additionally, US Cellular customers will be able to fully participate in industry-leading, value-rich Un-carrier plans packed with benefits and perks and best-in-class customer service, with the potential to save hundreds of millions of dollars for US Cellular customers. T-Mobile customers will also gain access to the UScellular network in areas that previously had limited coverage and will benefit from increased performance throughout the UScellular area as a result of the addition of acquired UScellular spectrum to the T-Mobile network. Wireless consumers across the country will benefit from the greater choice and competition that the proposed transaction will create.

Best-in-class networking experience

The combination of both companies’ spectrum and resources will provide U.S. mobile customers with superior connectivity on T-Mobile’s industry-leading nationwide 5G network, which offers best-in-class performance, coverage and speeds. Customers of both companies, especially those in rural areas with less developed networks, will have access to faster and more reliable 5G service that they would not otherwise have.

Plans full of value

U.S. mobile customers will have the option to stay with their current plans or upgrade to the T-Mobile unlimited plan of their choice with no switching costs, which includes favorite carrier-free benefits like streaming and free international data roaming. If U.S. mobile customers decide to switch to T-Mobile, they could collectively save hundreds of millions of dollars a year. Some will also have access to plans with enhanced savings that were not previously available to them, including T-Mobile’s 5G Unlimited 55+ plans. All customers will benefit from T-Mobile’s award-winning customer service team and receive better, more accessible in-person and digital support.

More choice and more competition

This transaction will provide a much-needed choice of wireless solutions in areas with expensive and limited AT&T and Verizon plans, as well as those that are limited to one or no home broadband option at all. By leveraging the additional capacity and coverage gained from combined spectrum and wireless resources, T-Mobile will drive competition and expand its rapidly expanding portfolio of home broadband and fixed wireless products to communities without competitive broadband options, further reducing the digital divide for hundreds of thousands of customers. on UScell ​​premises.

Proven no carrier guide

T-Mobile has a proven, industry-leading track record of connecting businesses for greater connectivity, choice and value for consumers. The integration of MetroPCS in 2013 and Sprint in 2020 was considered two of the most successful mergers in wireless technology history, resulting in competitive changes that benefited millions of consumers. By leveraging its proven playbook for successful integration, T-Mobile will continue to deliver exceptional value and experiences to more people across the country, while compelling others to follow suit, for the benefit of customers.

Transaction details and financial profile

T-Mobile will pay approximately $4.4 billion for assets acquired from USCell in the transaction, combining cash with up to $2.0 billion in debt that T-Mobile will assume through an exchange offer made to certain US Cell debtors prior to the transaction close. To the extent that the debtors do not participate in the exchange, their notes will remain liabilities of US Cellular and the cash portion of the purchase price will be increased accordingly. Once the transaction closes, US Cellular will retain ownership of its second spectrum and its towers, and T-Mobile will enter into a long-term lease agreement on at least 2,100 additional towers. T-Mobile does not expect the transaction to have an impact on the company’s fiscal 2024 guidance or its fiscal 2024 authorized shareholder return program. T-Mobile expects this transaction to result in approximately $1.0 billion in effective operating cost synergies upon integration and capital expenditures on an annual basis, with the total cost of achieving integration currently estimated at $2.2-2.6 billion. The company plans to reinvest some of the synergies in improving consumer choice, quality and competition in the wireless industry.