T-Mobile, the 3rd largest network provider, is set to acquire U.S. Cellular, the 5th largest in the nation. T-Mobile would be set to inherit up to 4 million customers, putting it within striking distance of Verizon.
T-Mobile has been aggressively upturning the US market since its entry in 2001. It acquired Sprint in 2020, and pioneered the non-contract subscription that its main competitors have now adopted. Reuters says:
T-Mobile will buy almost all of regional carrier United States Cellular’s wireless operations including customers, stores and 30% of its spectrum assets in a deal valued at $4.4 billion, the telecom giant said on Tuesday.
U.S. Cellular’s shares jumped more than 10% in trading before the bell and comes nearly ten months after the company said it was exploring strategic options.
T-Mobile and its competitors have been attempting to secure customers in the new home based 5G internet market. This has greatly increased access to fast speed internet in remote areas where running wire would be too expensive. The Washington Post continues:
At that price, T-Mobile is paying about $1,000 per customer, which telecommunications consultant Chetan Sharma described as a good deal, given that the typical user eventually can generate $4,000 to $5,000 for the company.
The deal is still subject to certain regulatory approvals. The companies expect it to close in mid-2025.
The top three cellular operators have been relatively unscathed from federal regulators compared to their Big Tech competitors such as Google and Amazon. Still, this second merger from T-Mobile could expose it to unwanted publicity.
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