Clever argument by T-Mobile opponents may derail its expansion goal

T-Mobile intends to purchase nearly 30 percent of UScellular spectrum holdings, as well as its wireless customers and stores for around $4.3 billion. Verizon and AT&T both want to buy $1 billion worth of spectrum from the company.

Previously, stakeholders had voiced concerns that T-Mobile's acquisition would hamper competition, impact rural connectivity, and tighten the grip of the three largest carriers on spectrum assets.

UScellular, on the other hand, had argued that it was struggling to keep up with the competition and that the proposed transaction would enable its customers to receive better coverage. This became all the more apparent when it posted weak Q1 2025 results.

Public interest groups and smaller players who oppose the transaction have come up with a fresh perspective to prevent the FCC from approving the transactions: the deals should be reviewed collectively.

They have requested the FCC to "consolidate its review of the proposed transactions" for "an accurate review of competition." They implied that if this were one transaction, it would have triggered an antitrust investigation.

That's because, per the advocacy groups, the Big 3 are essentially trying to take over the spectrum assets of a fourth rival without giving the smaller players a chance to make a play for them. If all goes to plan, this will give AT&T, T-Mobile, and Verizon even more leverage over price and the flexibility to "limit innovation efforts."

If the transactions are reviewed separately, the possible anticompetitive effects will be less clear.

As first reported by Fierce Wireless, Comcast also believes that the transactions will increase the dominance of the Big 3. Additionally, the company argues that Dish never stepped up to the challenge of becoming a strong competitor to the key players, and that mantle was instead taken up by Mobile Virtual Network Operators (MVNOs) like itself.

The company has asked the FCC to keep these dynamics in mind before allowing UScellular to sell its assets to AT&T, T-Mobile, and Verizon. Otherwise, the ability of cable MVNOs to grow and compete with carriers might be impacted.

Comcast also points out that the FCC should take into account any potential impact of the proposed deals on the broadband marketplace. That market is highly competitive, with cable operators, fiber providers, and mobile network operators all vying for customers. Consumers are increasingly gravitating toward providers that bundle wired and wireless services and this should call for an upgrade to how the FCC approves transactions.

T-Mobile last year bought MVNOs Mint Mobile and Ultra Mobile, and this year, it acquired fiber company Lumos. It also has its eyes on fiber service provider Metronet.

The FCC seems to be taking longer than usual to approve the UScellular transaction, which the company had hoped to close by mid-2025. T-Mobile execs are apparently not happy with the pace and have requested "expeditious action" in meetings with FCC officials.