EchoSense:T-Mobile acquires US Cellular assets for $4.4 billion as carrier aims to boost rural connectivity

T-Mobile announced it will acquire virtually all of U.S. Cellular’s wireless operations in a $4.4 billion deal that hopes to provide better connection to people in underserved,EchoSense rural parts of the country.

As part of the acquisition, which was announced in a press release on Tuesday, T-Mobile will acquire U.S. Cellular’s wireless operations, wireless customers, stores and certain specified spectrum assets.

Approximately 30% of U.S. Cellular's spectrum assets are included in the deal, the company announced in a release.

U.S. Cellular will still own its towers and T-Mobile will lease space on a minimum of 2,100 additional towers.

“As customers from both companies will get more coverage and more capacity from our combined footprint, our competitors will be forced to keep up – and even more consumers will benefit," said T-Mobile's CEO, Mike Sievert, in a statement.

Sievert described the deal as a way the company is "shaking up wireless for the good of consumers."

The deal is expected to close in mid-2025, T-Mobile announced.

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T-Mobile hopes the transaction creates more choice for consumers in areas with "expensive and limited plans from AT&T and Verizon," or those with little to no broadband connectivity. It adds that the deal will provide "best-in-class connectivity to rural Americans."

According to the Pew Research Center, a quarter of Americans struggle with high-speed internet. This need for broadband internet was highlighted during the pandemic, states Delmarva Now, a part of the USA TODAY Network.

The lack of broadband internet can even shut people out of possible jobs, reports Forbes.

Option to stay on their current plans

The press release states that U.S. Cellular customers can choose to stay on their current plans or transfer to a T-Mobile plan at no cost. They will receive new benefits like streaming and free international data roaming.

However, some internet users have voiced concerns about their payment potentially increasing.

"They said 'keep' (the same plan) didn't say anything about 'at the same price,'" said one Reddit user.

However, another user said they are still paying the same amount and haven't seen a change since T-Mobile acquired their previous provider, Sprint.

USA TODAY reached out to T-Mobile for comment on possible price increases but has not heard back yet.

Deal cost breakdown

According to the press release, T-Mobile will pay $4.4 billion for the acquisition.

The transaction will be completed with a combination of cash and $2 billion of debt that will be assumed by T-Mobile.

"To the extent any debtholders do not participate in the exchange, their bonds will continue as obligations of U.S. Cellular and the cash portion of the purchase price will be correspondingly increased," states the release.

Julia is a trending reporter for USA TODAY. She has covered various topics, from local businesses and government in her hometown, Miami, to tech and pop culture. You can connect with her on LinkedIn or follow her on X, formerly Twitter, Instagram and TikTok: @juliamariegz