T-Mobile to Acquire U.S. Cellular for $4.4 Billion to Enhance Rural Service

T-Mobile announced on Tuesday that it will acquire the wireless operations of U.S. Cellular for $4.4 billion, a strategic move aimed at enhancing service in rural areas. This acquisition, set to close next year, will add approximately four million new customers to T-Mobile’s base. Despite the sale, U.S. Cellular will retain about 70% of its wireless spectrum licenses and cell towers.

The merger is seen as a response to an increasingly consolidated mobile market. T-Mobile CEO Mike Sievert stated, “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.” U.S. Cellular’s Board Chair, LeRoy T. Carlson, Jr., emphasized the need for scale and investment to remain competitive, citing the benefits of integrating their operations with T-Mobile.

This move follows T-Mobile’s recent acquisitions, including the $1.35 billion purchase of Ka’ena Corporation, the parent company of Mint Mobile and Ultra Mobile, which was approved by the Federal Communications Commission (FCC) last month. T-Mobile also merged with Sprint in 2020.

• However, T-Mobile’s expansion efforts come amid heightened antitrust scrutiny. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) have been increasingly vigilant, challenging numerous mergers last year. The revised merger guidelines released six months ago reflect this rigorous oversight. Whether the acquisition of U.S. Cellular will face significant regulatory hurdles remains to be seen.