T-Mobile announced its acquisition of nearly all of U.S. Cellular’s assets, valued at nearly $4.4 billion.
In a statement Tuesday, T-Mobile announced that it would be taking on U.S. Cellular’s wireless operations, wireless customers, stores, and some specified spectrum assets. The $4.4 billion would include both cash and $2 billion in U.S. Cellular debt.
Mike Sievert, CEO of T-Mobile, said in a press release that the deal would greatly benefit both companies.
“With this deal T-Mobile can extend the superior Un-carrier value and experiences that we’re famous for to millions of UScellular customers and deliver them lower-priced, value-packed plans and better connectivity on our best-in-class nationwide 5G network,” he said.
“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,” he added. “The Un-carrier is all about shaking up wireless for the good of consumers and this deal is another way for us to continue doing even more of that.”
U.S. Cellular Chairman LeRoy T. Carlson Jr. said in a press release from the company that the decision was made after a careful strategic review and was found to be the best option for the company ultimately.
“In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile,” he said. “T-Mobile has the resources to provide UScellular’s customers with an unparalleled network experience, lower prices and higher-quality services.”
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Both companies stressed the improvement of connectivity that the move will bring for rural people.
T-Mobile said current U.S. Cellular customers will be given the option to stick with their current plans or switch to T-Mobile’s, with some improvements either way.
