Latest news with #USCellular
Android Authority
a day ago
- Business
- Android Authority
T-Mobile's US Cellular acquistion has been approved: What happened, and what's next?
Joe Maring / Android Authority TL;DR The DOJ and FCC have both approved T-Mobile's $4.4 billion acquisition of most of US Cellular, with no major conditions or safeguards imposed. T-Mobile will gain US Cellular's customers, stores, and spectrum, while US Cellular will keep its towers and focus on leasing them out. Critics worry the merger could reduce competition, especially in rural areas, but US Cellular customers shouldn't see immediate changes at least. Last year, T-Mobile announced plans to acquire most of US Cellular in a $4.4 billion deal. As is typical with massive mergers, the deal required both DOJ and FCC approval. At the time, it was unclear whether such a proposal would actually be approved by either organization. After the election, the odds became much higher with the new administration. Fast forward to today — just last week, the DOJ signed off on the offer, and to little surprise, the FCC has now followed suit (via Fierce Wireless). The FCC approved the transaction without a vote from the full commission (which is made up of two Republicans and one Democrat). While these kinds of offers often come with concessions — such as new unlocking policies or other limits — this particular approval didn't include any additional conditions and passed through without any real opposition from the FCC. As part of the agreement, T-Mobile will pay $2.4 billion in cash and assume $2 billion in US Cellular debt. It will also acquire up to 4 million customers, all of US Cellular's retail stores, and its spectrum holdings in the 600MHz, 700MHz, 2.5 GHz, AWS, and PCS ranges. Verizon and AT&T will also be purchasing a portion of US Cellular's spectrum. However, US Cellular will still retain 4,400 towers and, instead of offering direct customer service, will focus on leasing these towers out to other companies. As you can imagine, not everyone is thrilled about the approval of this deal. The RWA (Rural Wireless Association), in particular, is concerned that there are no conditions around roaming. For those who don't know, US Cellular might be a regional carrier, but in certain parts of the US, it's literally the only choice. For example, I have family in Sidney, Iowa, and without roaming agreements, I'd have no coverage with the big three at all there. Thankfully, US Cellular has extensive roaming agreements in place that are beneficial to both the big carriers and smaller rural providers. While these agreements may remain in place under T-Mobile's stewardship, there's nothing written in stone to guarantee it. 'The FCC's decision takes T-Mobile's promises as gospel without any demand for accountability post-closing,' said Carri Bennet, RWA's outside general counsel. 'FCC staff's failure to impose meaningful safeguards is a dereliction of its duty to protect competition and consumers and safeguard the public interest.' What happens next, and is this merger a good or bad thing? I'll be honest, I'm fairly concerned about this merger as someone who lives in a rural area myself. While it won't affect me personally since I have decent coverage from multiple networks, that's not the case everywhere. Less competition is never a good thing. T-Mobile promised big things with Sprint, and while that acquisition certainly helped improve T-Mobile's network, we've also seen continued price increases and other moves from the carriers that suggest fewer players will always mean higher prices and less flexibility for customers. Do you agree with the FCC's approval of the US Cellular deal? 0 votes Yes, why not? NaN % Yes, but there should have been restrictions NaN % No, this won't end well for the industry NaN % Other (Tell us in comments) NaN % As for what happens next? T-Mobile and US Cellular must arrange to close on the transaction. The exact timeframe can vary, ranging from weeks to months or longer. Once complete, US Cellular won't just disappear as an option. T-Mobile previously clarified that US Cellular customers won't see any immediate changes and will be able to continue their plans as usual. This is similar to how Sprint initially worked before it was eventually rolled into T-Mobile completely, but considering US Cellular's brand recognition in certain rural areas, it's entirely possible the carrier could live on as a value brand of sorts. That's just speculation on my part, though. Really, the only thing I can say for sure is that US Cellular customers probably won't see any noticeable changes until late this year at the earliest. Beyond that, all we can do is watch and see how this unfolds. Got a tip? Talk to us! Email our staff at Email our staff at news@ . You can stay anonymous or get credit for the info, it's your choice.
Bloomberg
5 days ago
- Business
- Bloomberg
FCC Greenlights T-Mobile's $4.4 Billion US Cellular Acquisition
By The Federal Communications Commission cleared T-Mobile US Inc. to acquire much of the wireless business of US Cellular Corp and some of its network infrastructure. The approval comes after T-Mobile committed to eliminating diversity and inclusion programs to win the favor of the commission. The US Justice Department decided earlier this week not challenge the $4.4 billion deal on antitrust grounds.
Yahoo
6 days ago
- Business
- Yahoo
Justice Department Won't Try To Block T-Mobile's Acquisition Of U.S. Cellular
The Justice Department won't try to block T-Mobile's acquisition of U.S. Cellular, but the chief of the Antitrust Division is warning of industry concentration. Gail Slater, assistant attorney general, said in a statement that the Antitrust Division 'evaluated the likelihood of harm to competition and the potential effects of the transaction on consumers and determined that, on balance, the potential harm and offsetting benefits of the transaction do not warrant an enforcement action. UScellular's inability to maintain its competitive position would result in declining value to its subscriber base, whereas the transaction offers them hope that they will be able to experience the benefits of a more robust cellular network.' More from Deadline Judge Rules Don Lemon Can Proceed With Claims In Lawsuit Against Elon Musk's X CNN Defends Report On FEMA's Slowed Response To Texas Floods Amid Attacks From Trump's Department Of Homeland Security T-Mobile To End DEI Programs As It Seeks FCC Regulatory Approval Of Transactions But Slater also warned of concentration in the industry, with three major players T-Mobile, Verizon and AT&T. 'This transaction, and two other deals contingent on its closing, will consolidate yet more spectrum in the Big 3's oligopoly, which controls more than 80 percent of the mobile wireless spectrum in the country,' she said. 'The Department investigated these spectrum transfers and concluded that they would not result in sufficient harm to competition to warrant an enforcement action, yet the risks to future competition due to further spectrum aggregation by the Big 3 are acute.' The $4.4 billion transaction was announced in May, 2024, with T-Mobile acquiring U.S. Cellular's wireless operations, including customers, stores and spectrum. T-Mobile is awaiting the FCC's greenlight for the transaction. Earlier this week, the company informed FCC Chairman Brendan Carr that it was ending its diversity, equity and inclusion programs. Carr had previously said that he would seek to block mergers and major transactions of companies that have DEI policies, which he has claimed are 'invidious' forms of discrimination. Best of Deadline 'The Buccaneers' Season 2 Release Schedule: When Do New Episodes Come Out? 'The Buccaneers' Season 2 Soundtrack: From Griff To Sabrina Carpenter 2025 TV Series Renewals: Photo Gallery
Bloomberg
6 days ago
- Business
- Bloomberg
Justice Department Won't Challenge T-Mobile Deal for US Cellular
The Justice Department won't challenge T-Mobile US Inc. 's $4.4 billion purchase of US Cellular Corp. 's wireless operations and some of its spectrum assets, despite some concerns about the deal. 'After a thorough investigation, the Antitrust Division determined prudentially not to seek an injunction to prevent T-Mobile from closing on its proposed acquisition of US Cellular,' DOJ antitrust head Gail Slater said in a statement Thursday.
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Justice Department Won't Seek Injunction for T-Mobile Acquisition of U.S. Cellular
A major hurdle has been removed on the path to a deal between T-Mobile and U.S. Cellular. The Justice Department on Thursday said its antitrust division won't seek an injunction to prevent T-Mobile from closing on its proposed acquisition of U.S. Cellular.
