FCC Approves $4.4 Billion US Cellular Takeover

In May last year, T-Mobile announced its plans to acquire US Cellular’s wireless operations. More than a year later, the FCC has finally approved T-Mobile’s much-awaited merging with US Cellular. The carrier expected to close its US Cellular deal much earlier, but it hit a roadblock in December last year. At the time, the Communications Workers of America (CWA) urged the FCC to reject the move. Additionally, last month, a lack of quorum at the FCC delayed the deal.

Apart from the US Cellular deal, the FCC has also approved a separate T-Mobile deal to acquire a 50 percent stake in Metronet through a collaborative venture with KKR.

FCC finally greenlights T-Mobile’s acquisition of US Cellular’s wireless business

After the FCC’s much-awaited approval, T-Mobile will absorb around 4.5 million US Cellular customers across 21 states. The deal will also provide the largest US carrier with US Cellular’s retail stores and 30 percent of spectrum, including 600MHz, 700MHz, 2.5GHz, AWS, and PCS holdings. US Cellular will keep its 4,400 towers, which it plans to lease to other companies.

The FCC noted the move would offer substantial benefits for consumers of the two operators involved. It’s worth mentioning that the approval comes after T-Mobile committed to eliminating its diversity, equity, and inclusion (DEI) policies to win the favor of the regulator.

The regulator has also approved another deal involving T-Mobile

Additionally, the FCC has approved the transfer of five Metronet subsidiaries to T-Mobile. As part of the deal, T-Mobile will acquire fiber provider Metronet in a joint venture with investment firm Kohlberg Kravis Roberts (KKR). In collaboration with KKR, T-Mobile will invest $4.9 billion to acquire a 50 percent stake in Metronet, which serves well over 2 million homes and businesses in 17 states.

Through the joint venture, Metronet expects to reach 6.5 million homes passed by the end of 2030. Once the deal closes this year, Metronet will become a “wholesale service” provider for T-Mobile’s retail consumers.