T-Mobile is positioned to acquire US Cellular's wireless services for $4.4 billion, further expanding the telecom giant's prowess with at least 2,600 more towers.
According to the companies' press release on Monday, T-Mobile will acquire US Cellular's stores and at least 30% of its licensed assets to offer "more competitive choices" for US Cellular's customers.
(Photo : Joe Raedle/Getty Images)
The acquisition is expected to help the company provide its wireless services to rural Americans, which comprises nearly 40% of US Cellular's current total customers.
The deal is set to be finalized by mid-2025, in time for T-Mobile's earlier plans to also expand its fiber connections next year.
The acquisition is T-Mobile's latest move to expand its operations to keep up with steeper competition in the US.
It can be remembered that Verizon, one of T-Mobile's biggest competitors, was also reported to have acquired a huge part
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The US Cellular acquisition is the second telecom operation T-Mobile has consolidated within the past two years, the first one being the Ryan Reynolds-backed Mint Mobile for $1.3 billion.
The acquisition is expected to provide T-Mobile with a better foothold in rural areas for less competition while increasing its capabilities to fend off business rivals in the metropolitan market.
According to The Verge, the deal will generate the telecom 3 million more customers by the end of this year for its "low-band" 5G and mid-band 4G connections.
Will There be a Price Change?
With no federal approval yet, details of the deal remain unknown to the public, including information on whether the old US Cellular services will change.
It can be remembered that T-Mobile recently confirmed a price increase across its old data plans by $5 per line per month, including several services for the elderly and military veterans.
So far, T-Mobile has not hiked up connection bills for most of Mint Mobile's services following its acquisition but rather introduced several of its services when buying Mint Mobile's products.
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