UScellular customers are set to experience enhanced services in light of T-Mobile’s announcement where it declared its intentions to purchase the majority portion of the company. However, this change is expected to take place in mid-2025, according to Jason Leigh, Research Manager for IDC’s mobility team.
An integral part of this $4.4 billion deal is T-Mobile’s agreement to secure most of UScellular’s wireless operations. This includes customers and stores relating to its wireless services, in addition to certain specified spectrum assets, as disclosed in an official company statement.
Jason Leigh of IDC stated that the improvements in service would begin to manifest once the transaction is completed, an event projected to occur within the next 12 months.
UScellular, based in Chicago, will maintain ownership of its other spectrum and towers, while T-Mobile enters a long-term lease agreement for space on at least an additional 2,100 towers being retained. Leigh described the transaction as somewhat expected, as UScellular had expressed a desire in the past year to explore strategic options, a phrase typically used to imply the intention to sell.
UScellular, with a notable brand presence in the U.S. Midwest, has been experiencing a steady decrease in subscribers, Leigh explained. He mentioned the difficulties in continuously investing in much-needed infrastructure, especially in the context of 5G deployment and adoption.
According to Leigh, the cash intensiveness of 5G network development presents a substantial challenge for UScellular. Operating in its current locations results in gaps in 5G coverage. Customers may often find themselves oscillating between LTE and 5G connectivity, a function most devices struggle with. “If you’re driving from a 5G tower to a 4G tower, your connection becomes somewhat unpredictable. The transition isn’t always smooth,” he added.
On the brighter side, Leigh mentioned that UScellular customers could have a chance to access the comprehensive spectrum of T-Mobile’s highly efficient 5G network. “For a long time, Verizon was deemed the most reliable network. T-Mobile’s aggressive pursuit of 5G seems to be an attempt to rail against this, aiming to become the most reliable network,” he stated.
In agreement with the deal, it’s suggested that UScellular plan holders could retain their current plan or opt for a limitless T-Mobile plan without any switching costs. Benefits of the latter include streaming and complimentary international data roaming, T-Mobile clarified.
The company didn’t disclose its plans for enterprise customers.
Laurent Therivel, CEO of UScellular, mentioned that the “transaction allows our customers to have access to improved coverage and speed, in addition to unlimited texting in over 215 countries, content offers, device upgrades and other T-Mobile benefits.”
T-Mobile stated it would fund the acquisition through a blend of cash and taking on up to $2 billion of UScellular’s debt.
