It's official! T-Mobile swallows another wireless provider
It's official! T-Mobile swallows another wireless firm.
T-Mobile officially closed Friday on its latest purchase as 4 million UScellular customers now belong to T-Mobile and can experience what Ookla called "the best mobile network" in the U.S. Consumers in UScellular's coverage area who were unable to subscribe for high-speed connectivity eventually will be able to join T-Mobile’s in-home broadband service. But the advantages aren't all going to former UScellular customers.
T-Mobile now owns UScellular as the transaction closes
T-Mobile said on Friday that its customers who find themselves in UScellular's former coverage areas will benefit from enhanced network coverage. That's because, as part of the transaction, T-Mobile gets spectrum once owned by the carrier that was the fifth largest in the U.S. UScellular customers will enjoy a seamless transition to the T-Mobile network and should notice performance improvements right away starting from the first day. Nearly all UScellular customer devices will continue to work on the T-Mobile network.
T-Mobile CEO Mike Sievert shows off a smile. | Image credit-T-Mobile
UScellular customers are being permitted to stay on their existing plans for now. But once networks and systems become integrated, these customers will be able to select from one of T-Mobile's unlimited plans to join. Once on a T-Mobile plan, these customers will have the opportunity to add great features to their unlimited plans and enjoy such outstanding streaming services such as Netflix, AppleTV+, and MLB.TV. UScellular customers moving to a T-Mobile unlimited plan will be allowed to roam internationally in over 215 countries and destinations free, view free in-flight Wi-Fi, take advantage of built-in device upgrades, and more.
UScellular customers could decide to move up to one of the Experience plans, which include T-Satellite. This benefit automatically connects T-Mobile subscribers' phones with a Starlink satellite in areas where there is no cellular service. Users are currently limited to sending and receiving text messages and sharing their location via their phones' messaging app. Picture and voice messaging via satellite is also being pushed out now by T-Mobile. The carrier says that next, satellite data from optimized apps will be available. Eventually, users will be able to make and take calls via satellite. Former UScellular subscribers can also decide to choose a T-Mobile plan made for first responders, teachers, and Seniors (those 55 and older).
The final totals for the deal show that T-Mobile acquired practically all of UScellular's wireless operations for $4.3 billion after final adjustments were made. T-Mobile paid $2.6 billion in cash and will assume responsibilities for approximately $1.7 billion in UScellular debt. T-Mobile will take over responsibility for this debt following an exchange offer made to UScellular debtholders, which is expected to close on August 5, 2025. The UScellular brand will transition in phases to T-Mobile.
Before or during its third quarter earnings call, T-Mobile will release a statement about how the transaction will affect the company financially.
T-Mobile keeps growing through acquisitions
As we told you late last month, UScellular will get a new name and NYSE ticker symbol. Array Digital Infrastructure Inc. is the new name, and AD is the new stock symbol. The company will now manage two portfolios; one consists of cell towers, and the other consists of spectrum.
Now that the UScellular deal has closed, it joins some other recent acquisitions made by T-Mobile. Last year, the carrier picked up MVNO Mint Mobile, which was part-owned by actor Ryan Reynolds. Reynolds also came up with Mint's humor-based ad campaigns which still run to this day. Also announced last year, T-Mobile picked up another MVNO, Ultra Mobile. The Mint Mobile closing took place on May 1st, 2024, while the Ultra Mobile transaction closed on the very same day.
Of course, the largest deal closed by T-Mobile was the $26.5 billion acquisition of Sprint, which closed on April 1st, 2020. Before that deal, T-Mobile bought MVNO MetroPCS, with that transaction closing on May 1, 2013.
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