T-Mobile Makes Billion-Dollar Move to Dominate US Mobile Market - Get Ready for Game-Changing 5G!

 T-Mobile (NASDAQ: TMUS) and UScellular (NYSE: USM) today announced that T-Mobile has agreed to acquire substantially all of UScellular' wireless operations. This includes UScell ​​wireless customers and stores, as well as certain spectrum assets.

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After closing, T-Mobile's leading 5G network will expand to give millions of US mobile customers, especially those in underserved rural areas, a superior connectivity experience, moving from a roaming experience outside of US mobile coverage areas to full nationwide access on the network largest and largest in the country. 

Fastest 5G network. Additionally, UScellular customers will have the ability to fully participate in Un-carrier's industry-leading value package full of benefits and perks, as well as best-in-class customer support with the opportunity to save hundreds of millions of dollars for UScellular customers. 

T-Mobile customers will also gain access to the UScellular network in areas where it previously had limited coverage and benefit from improved performance across the UScellular footprint from the addition of the acquired UScellular spectrum to the T-Mobile network.

And wireless consumers across the country will benefit from the increased choice and competition that this proposed transaction will create.

“With this deal T-Mobile can expand the value and superior Un-carrier experience we are known for to millions of US mobile customers and provide them with lower-priced, higher-value plans and better connectivity on our best-in-class network nationwide . 5G network,” said Mike Sievert, CEO of T-Mobile. 

“As customers of both companies will gain more reach and capacity from our combined footprint, our competitors will be forced to follow suit – and even more consumers will benefit. The Un-carrier aims to transform wireless networks for the good of consumers and this deal is another way for us to continue to do even more.

“The purchase of T-Mobile and the integration of UScellular' wireless operations will provide best-in-class connectivity to rural America through increased nationwide coverage and service offerings at more attractive prices,” said Laurent Therivel, CEO of UScellular. 

“This transaction gives our customers access to better coverage and speeds, as well as unlimited texting in more than 215 countries, content offerings, device upgrades and other T-Mobile benefits.”Best in Class Network Experience

The combination of the two companies' spectrum and assets will provide U.S. mobile customers with a superior connected experience on T-Mobile's industry-leading nationwide 5G network that offers best-in-class performance, coverage and speed. 

Customers of both companies, particularly those in underserved rural areas, will receive access to faster and more reliable 5G services that they would not otherwise have.

Value Package

US mobile customers will have the option to stay on their current plan or switch to their preferred T-Mobile unlimited plan with no switching fees, which includes beloved Un-carrier benefits like streaming and free international data roaming. If US mobile customers choose to switch to T-Mobile, they can save hundreds of millions of dollars combined annually. 

Some will also have access to plans with increased savings that were previously unavailable to them, including T-Mobile's 5G Unlimited 55+ plan. All customers will be able to take advantage of T-Mobile's award-winning customer service team, and get better, more accessible digital and in-person retail support More Choices and Increased Competition

This transaction will create much-needed wireless options in areas with expensive and limited plans from AT&T and Verizon, and for areas limited to one or no options for home broadband connectivity. By leveraging the additional capacity and reach created through combined spectrum and wireless assets, T-Mobile will spur competition and expand its fast-growing offering of home broadband and fixed wireless products to communities without competitive broadband options, further bridging the digital divide for hundreds person. from thousands of customers in UScellular's footprint.

Proven Operatorless Playbook

T-Mobile has a proven, industry-leading track record of bringing companies together for increased connectivity, choice and value for consumers. The integrations of MetroPCS in 2013 and Sprint in 2020 are listed as two of the most successful merger combinations in wireless history resulting in changes that increased competition and benefited millions of consumers. By leveraging tried-and-true playbooks for successful integration, T-Mobile will continue to deliver exceptional value and experiences to more people across the country, while forcing others to follow suit, for the good of their customers.

Transaction Details and Financial ProfileT-Mobile will 

pay approximately $4.4 billion for assets acquired from USmobile in the transaction in a combination of cash and debt of up to $2.0 billion that T-Mobile will assume through an exchange offer that will be made to certain USmobile debt holders prior to closing . If debt holders do not participate in the exchange, their bonds will remain UScellular obligations and the cash portion of the purchase price will increase. Upon closing of the transaction, UScellular will retain ownership of the remainder of the spectrum as well as its towers, with T-Mobile entering into long-term agreements to lease space on at least 2,100 additional towers retained. T-Mobile does not expect the transaction to impact the company's 2024 guidance or statutory 2024 shareholder returns program. T-Mobile estimates the transaction will generate approximately $1.0 billion in total effective opex and capital expenditure annual operating cost synergies following integration, with the total cost to achieve integration currently estimated at between $2.2 billion to $2.6 billion. The company plans to reinvest some of its synergies to increase consumer choice, quality and competition in the wireless industry.

The transaction, which is subject to the satisfaction of customary closing conditions and receipt of certain regulatory approvals, is expected to close in mid-2025.

Advisor

Cleary Gottlieb Steen & Hamilton LLP and DLA Piper LLP served as legal counsel to T-Mobile.

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