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T-Mobile to acquire nearly all of US Cellular in $4.4 billion debt-laden deal – Daily Press

By MICHELLE CHAPMAN (AP business writer)

T-Mobile is buying US Cellular’s wireless business and certain spectrum assets in a deal valued at $4.4 billion, further consolidating the industry.

As part of the agreement, T-Mobile will receive US Cellular’s wireless business and approximately 30% of the spectrum assets across various spectrum bands. In addition, T-Mobile will enter into a new master license agreement for more than 2,000 towers and extend the lease term for the approximately 600 towers where T-Mobile is already a tenant.

“Bringing together UScellular’s network resources with ours will allow us to close connectivity gaps, creating a better experience for all our customers with more coverage and more capacity,” said T-Mobile CEO Mike Sievert in a statement.

T-Mobile said Tuesday that U.S. mobile customers will get access to its 5G network, giving them better coverage and speed.

“In light of increasing competition and the increasing capital intensity required to keep pace with the latest technologies, and following our careful and considered strategic review, we believe that continuing to achieve our mission will require scale and investment which can best be achieved by integrating our wireless operations with T-Mobile’s,” said U.S. Cellular Chairman LeRoy Carlson Jr. in a statement.

The transaction includes a combination of cash and up to approximately $2 billion in assumed debt. Up to $100 million of the cash component is subject to the achievement of certain financial and operating metrics between signing and closing of the deal.

US Cellular will retain approximately 70% of its spectrum portfolio across spectrum bands.

The deal was unanimously approved by the boards of directors of United States Cellular Corp. and Telephone and Data Systems Inc, a majority owner of US Cellular. It is expected to close in mid-2025.

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