On Tuesday, T-Mobile announced its plans to purchase most of U.S. Cellular in a deal that will be worth $4.4 billion.
In its announcement, the carriers shared that the deal will see T-Mobile buy 30% of U.S. Cellular’s spectrum assets, the regional carrier’s customer accounts, and retail stores.
The deal will also involve as much as $2 billion in debt and is slated to be completed in the middle of next year, pending regulatory approvals.
Customers of U.S. Cellular will be allowed to keep their current plans or switch to a T-Mobile plan, both companies shared in their press release.
U.S. Cellular has 4 million wireless customers in 21 states and will now be the second cell provider to be acquired by T-Mobile this decade.
In 2020, T-Mobile acquired Sprint in a $26.5 billion takeover less than a decade after T-Mobile itself was almost acquired by AT&T for $39 billion.
While AT&T abandoned its plans after facing backlash from the Obama administration, T-Mobile’s acquisition is expected to sail smoothly, telecom analyst Blair Levin of New Street Research shared with CBS Money Watch.
However, Levin did note that if any regulators look to stop the deal, it would be the Federal Communications Commission.
“The major concerns we have heard go to the approach the leadership at the antitrust authorities and the FCC have taken in analyzing transactions,” Levin said in a research note to investors. “While these concerns are understandable, we don’t think they will lead to any transaction being rejected.”