T-Mobile has agreed to take over all of UScellular’s wireless operations, including UScellular’s wireless customers and stores and certain company assets.
The acquisition, valued at a staggering $4.4 billion, marks a significant expansion for T-Mobile. It solidifies their position as one of the largest cellular operators in the United States, a move that is sure to inspire confidence and optimism among investors.
T-Mobile snaps up UScelluar
For existing UScellular customers, the integration of T-Mobile’s national 5G network brings a host of benefits. They will gain access to T-Mobile’s value-packed plans, filled with perks and benefits, and enjoy top-notch customer support. This transition also presents an opportunity for potential cost savings, potentially amounting to hundreds of millions of dollars.
The deal involves a mixture of cash and up to $2.0 billion of debt, which T-Mobile will assume through an exchange offer made to certain UScellular debtholders prior to closing.
Mike Sievert, CEO of T-Mobile, said of the deal that “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. 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.”
UScellular will remain in control of its cellular tower infrastructure and T-Mobile has made a costly move to lease space to accommodate 2,100 additional towers nationally.
$4.4billion might seem like a costly sum, but T-Mobile are confident that this deal will generate “approximately $1.0 billion in effective total opex and capex annual run rate cost synergies upon integration, with total cost to achieve the integration currently estimated at between $2.2 billion to $2.6 billion.”
Image: T-Mobile.
