T-Mobile Acquires US Cellular, Looking to Strengthen Private 5G

T-Mobile, the second largest company in the U.S. wireless telecommunications industry, announced on May 28 that it will acquire part of the wireless business and spectrum assets of US Cellular, the fifth largest company in the industry, for up to $4.4 billion (approximately 690 billion yen). With this acquisition, T-Mobile strengthens its own 5G coverage area and capacity. The acquisition is also expected to strengthen its enterprise telecommunications business, including private 5G, which has lagged behind competitors.

In the deal, T-Mobile acquires US Cellular's customer base, retail channel, and 30% of the spectrum assets. The $4.4 billion acquisition price includes up to $2 billion in debt assumption. The acquisition is expected to close by mid-2025.

US Cellular has struggled in recent years to acquire new customers in the U.S. wireless telecommunications market, with approximately 4.5 million subscribed lines at the end of Q1 2024, a 4% decrease from the same period last year. In this situation, the company focused on its more stable enterprise telecommunications business. Earlier this month, the company had been making moves in the private 5G field, including signing an agreement with Cradlepoint, an Ericsson subsidiary and manufacturer of network equipment for the enterprise, to provide equipment.

Meanwhile, T-Mobile's private network business was disclosed in the company's most recent earnings announcement that projects with the U.S. Coast Guard and Delta Air Lines were underway.

Materials

• T-Mobile to Acquire UScellular Wireless Operations and Deliver Exceptional Value, a Superior 5G Experience and Unparalleled Benefits to Millions of Customers Customers
• T-Mobile buys struggling rival UScellular, looks to boost private 5G business
• T-Mobile US to buy UScellular's wireless operations, some spectrum for $4.4 billion