T-Mobile struck a $4.4 billion deal with US Cellular in May to acquire most of its wireless operations. Fast forward to July, U.S. Congress jumped into the mixup and sought the FCC’s intervention claiming this acquisition would lead to increased costs and limited choices for consumers. Now, US Cellular has written to the FCC asking it to green light this T-Mobile buyout since it’s the only option left for its survival.
US Cellular wants the FCC to approve a T-Mobile acquisition
In the letter, US Cellular has explained why it wants T-Mobile to acquire its wireless operations. The letter also mentions key details discussed during a meeting held on October 1 between top executives from T-Mobile and US Cellular as well as the FCC’s representatives. US Cellular has mentioned that this acquisition will allow its users to smoothly switch over to T-Mobile’s network.
It also added that this deal will allow T-Mobile to use 30% of its wireless spectrum to improve coverage in rural areas. Besides, it will let T-Mobile gain access to its four million customer base. As part of the agreement, US Cellular will also let T-Mobile access its over 2,000 towers in lease.
US Cellular may be doomed otherwise
The smartphone carrier mentioned that it has been facing significant challenges lately due to a loss in subscribers. In addition, the competitive tech market for wireless and cable providers has led it to a dire state. Moreover, US Cellular concluded that without this strategic acquisition by T-Mobile, it couldn’t sustain itself in the market.
US Cellular’s letter to the FCC also talks about what the T-Mobile acquisition would mean for the existing customers. Following the acquisition, US cellular customers will be able to switch to lower-cost plans from T-Mobile. If not, they can also stick with their current US Cellular plan for up to a year.
