Back in May, T-Mobile announced the acquisition of UScellular’s wireless operations. The deal included USceullar’s wireless customers and stores, apart from some specified spectrum assets. T-Mobile already acquired Sprint in one large $26 billion deal in April 2020. Also, it digested Mint Mobile and Ultra Mobile this year. However, its proposed acquisition of UScellular may not go as planned. The Communications Workers of America (CWA) have urged the FCC to reject T-Mobile’s acquisition of UScellular assets. The news came soon after the company faced a new class action lawsuit.
FCC could reject T-Mobile’s proposed acquisition of UScellular
This week, the CWA filed as many as four petitions to the FCC to reject the proposed merger of USceullar and T-Mobile. The CWA petitions could block the high-anticipated acquisition deal. Notably, in a press release, CWA urged the FCC to request that the terms of the acquisition include an enforceable measure to protect employees. Furthermore, the deal will be harmful to consumers.
Notably, the CWA represents a large number of employees in the telecom sector of the United States, including those who work in wireless retail stores. The petitions claimed that the acquisition of UScelluar would reduce competition in certain markets. It will hurt consumers, workers, and other rural carriers. Furthermore, the petitions also mentioned that the end users would face higher prices if T-Mobile held a large chunk of share in certain markets.
“Just four years ago, T-Mobile secured immense market power when it acquired Sprint by making false promises about job creation and preserving competition. Instead, the company cut jobs, suppressed wages, and left workers afraid to speak out. Now, T-Mobile wants to continue its takeover of the industry by purchasing UScellular”, said Claude Cummings J.r, the CWA President.
T-Mobile plans to acquire UScellular in a deal worth $4.4 billion
In May, T-Mobile announced the acquisition of UScellulr’s assets in a deal worth approximately $4.4 billion. The deal will be a combination of cash and up to $2 billion of debt. The company will use an exchange offer to certain UScellular debtholders before closing the deal. The deal will close at some point next year. However, it will only go through if the FCC and other regulatory authorities approve it.
