T-Mobile and U.S. Cellular, two major wireless operators in the United States, have announced a deal where T-Mobile will acquire most of U.S. Cellular's wireless operations and certain spectrum assets for $4.4 billion.
The acquisition includes about 30% of U.S. Cellular's spectrum assets across several bands, which T-Mobile plans to use to improve coverage in rural areas and offer better connectivity to U.S. Cellular customers around the country.
U.S. Cellular customers will be able to keep their current plans or switch to a T-Mobile plan without incurring switching costs.
The deal is expected to close in mid-2025, subject to regulatory approval.
T-Mobile has been active in mergers and acquisitions, having completed the takeover of smaller rival Sprint in 2020 and merged with MetroPCS Communications Inc. in 2013.
The acquisition is a significant move towards further consolidation in the wireless industry, which has fewer players than ever.
U.S. Cellular Chair LeRoy Carlson Jr. believes that continuing to deliver on U.S. Cellular's mission requires a level of scale and investment that is best achieved by integrating its wireless operations with those of T-Mobile.
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.
U.S. Cellular's stock jumped more than 2% in morning trading on Tuesday following the announcement.