The Federal Communications Commission (FCC) approved a deal between UScellular and T-Mobile that will result in UScellular ceasing to operate as an independent cellular provider.
While not a full merger where T-Mobile would completely absorb UScellular, the acquisition, once implemented, will transfer all customers and related functions (sales, distribution, customer service, etc.) and 30% of UScellular's spectrum rights to T-Mobile. UScellular will continue to own its network of cell towers and will lease them to T-Mobile for 15 years. In an investor document, UScellular states that it plans to "opportunistically monetize" the remaining 70% of its spectrum by selling it to other carriers.
The spectrum included in the deal consists primarily of frequencies T-Mobile currently utilizes and can quickly integrate into its existing network, including 600 MHz (Bands 71/n71), 2.5 GHz (Bands 41/n41), and various other frequencies.
Existing UScellular customers will have full access to T-Mobile's network once the merger is closed. T-Mobile stated in an earlier announcement that UScellular customers will be able to stay on their current plan or transition to a T-Mobile plan with no switching costs, similar to the previous merger between T-Mobile and Sprint.
We have not covered UScellular extensively here at the Mobile Internet Resource Center, primarily because it is a regional carrier without true nationwide service. Additionally, its cellular plan lineup has not included the kinds of features that most of our audience of mobile users looks for. While it's unclear how much longer it will be possible to continue signing up for UScellular plans, the current lineup lacks compelling options to consider (assuming you live within their service area) for getting grandfathered.
The primary benefit of the deal for consumers is that existing UScellular customers will now have full nationwide access to T-Mobile's network, and T-Mobile will gain significantly improved coverage and performance in areas served by UScellular.
Key Mobile Internet Related Considerations:
- T-Mobile is acquiring many assets and all customers from the regional carrier UScellular.
- Existing UScellular customers will have access to the T-Mobile network, and vice versa, without incurring roaming charges.
- UScellular customers will be able to stay on their current plan or move to a T-Mobile plan with no switching costs.
For more information:
Related Content at the Mobile Internet Resource Center:
Related Updates
[/alert]
Mobile Internet Resource Center (dba Two Steps Beyond LLC) is founded by Chris & Cherie of 