Communications giant T-Mobile has an agreement in place to acquire most of the mobile network operator U.S. Cellular. The deal, which is expected to be closed at some point in 2025, is worth $4.4 billion.
According to an announcement made by T-Mobile, the company will acquire “substantially all” of U.S. Cellular’s wireless operations, including its wireless customers and stores, as well as “certain specified spectrum assets.”
The agreement will see U.S. Cellular retain 70% of its wireless spectrum while giving up 30% to T-Mobile. Additionally, U.S. Cellular will have full ownership of its telecom towers, with T-Mobile agreeing on a long-term lease for around 2,600 of them. Reportedly, Verizon is interested in a remaining portion of U.S. Cellular’s wireless spectrum, but the deal between the two sides is unlikely to come together soon.
“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,” said Mike Sievert, CEO of T-Mobile, in a press release.
Following the announcement, T-Mobile’s shares jumped 1.30% compared to close price of $166.00 per share on Monday. On the other hand, U.S. Cellular jumped 21.80% percent compared to Monday’s close price of $19.91.