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T-Mobile Buyout of UScellular Challenged by Several US Senators
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T-Mobile Buyout of UScellular Challenged by Several US Senators
Jul 23, 2024 2:28 PM

05:05 PM EDT, 07/23/2024 (MT Newswires) -- T-Mobile (TMUS) on Tuesday responded to calls by a group of six US senators this week asking federal regulators to closely review the telecom carrier's proposed $4.4 billion acquisition of UScellular, arguing the company has a "great track record" in bringing "competition-enhancing shifts" benefitting customers.

T-Mobile in late May disclosed plans to acquire the bulk of UScellular's wireless operations, including selected portions of the privately held company's mobile spectrum and cellular tower leases along with its customer base and retail stores. T-Mobile also agreed to assume up to $2 billion of UScellular debt through an upcoming exchange offer before the deal's expected close in mid-2025.

The legislators, led by Sen. Elizabeth Warren, D-Massachusetts, and Sen. Amy Klobuchar, D-Minnesota, argued the proposed merger of these companies could weigh on competition, eventually "leading to higher prices and other harms for consumers across the country," according to a Tuesday letter to Federal Communications Commission Chair Jessica Rosenworcel and Jonathan Kanter, the head of the US Department of Justice's antitrust division.

The senators also urged regulators to closely examine T-Mobile's past deals, including concessions it made to secure approval of its 2020 purchase of former rival Sprint and consider unwinding that deal if they determine it failed to meet those goals.

The letter was also signed by Sens. Christopher Murphy and Richard Blumenthal, both Democrats representing Connecticut, Sen. Cory Booker, D-New Jersey, and Sen. Bernie Sanders, an independent from Vermont.

The proposed acquisition should provide customers with added services while "spurring even more growth and competition in wireless and beyond," T-Mobile said in a statement to MT Newswires, without directly addressing the senators' concerns. The company also mentioned its "great track record when it comes to delivering competition-enhancing shifts," adding it "look[s] forward to sharing more in our FCC filing in the coming months."

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