T-Mobile and UScellular are urging the Federal Communications Commission (FCC) to expedite the approval of their proposed transaction, which was agreed upon nearly a year ago. This merger involves the second-largest and the fifth-largest wireless carriers in the U.S.
The deal still awaits clearance from the FCC and the Justice Department, which are scrutinizing it, particularly given T-Mobile’s recent acquisitions of Sprint, Mint Mobile, and several smaller mobile virtual network operators (MVNOs). The proposed deal would see T-Mobile acquiring UScellular’s wireless operations, which includes its customer base, retail stores, and a significant portion of its spectrum.
The total cost of the acquisition stands at approximately $4.4 billion, which includes assuming $2 billion of UScellular’s existing debt. Concerns have been raised regarding T-Mobile’s previous commitments related to employment and store closures during its acquisition of Sprint, leading to hesitance from regulators.
T-Mobile has increasingly recognized the importance of spectrum, having centered its 5G network around the mid-band 2.5GHz airwaves acquired through its Sprint purchase. To facilitate the approval process for the UScellular transaction, T-Mobile and UScellular representatives recently met with the FCC to provide updates on their progress and to request the prompt transfer of the relevant spectrum.
However, not all stakeholders support this consolidation. Organizations such as the Rural Wireless Association, Communications Workers of America, and others have filed with the FCC, cautioning against a rushed decision that could harm competition and lead to price hikes in wireless services.
They have also expressed apprehension about T-Mobile’s growing dominance in spectrum licensing. Based on historical precedent, the approval process could take some time, with the T-Mobile-Sprint merger having taken 703 days to finalize.
While complexities exist in the current transaction, a rough timeline suggests it could close by summer, possibly around July 15th. Meanwhile, the FCC is seeking input from other impacted wireless companies, including AT&T and Verizon, regarding how the transaction might affect them, with responses due by May 13th.