In a strategic move to strengthen its dominance in the U.S. telecom market, T-Mobile is set to acquire 30% of US Cellular’s wireless spectrum and all its wireless customers and stores in a deal valued at $4.4 billion.

The deal also includes acquiring $2 billion in debt from US Cellular, which will further increase its value. The transaction is pending regulatory approvals from the Federal Communications Commission (FCC) and other relevant bodies and is expected to close by Q2 2025.

This move is part of T-Mobile’s ongoing effort to expand its 5G capabilities and cover more rural areas, which have traditionally been underserved in terms of fast and reliable wireless service. This acquisition will enable the company to improve its network coverage and bandwidth.

As the demand for high-speed internet grows, acquiring additional spectrum assets has become critical for telecom giants competing for market share.

T-Mobile has already established itself as a leader in 5G coverage and has been consistently investing in wireless spectrum assets to maintain its lead in 5G availability and speed. The company’s spectrum is already the most extensive in the U.S.

Beyond coverage improvements, the acquisition addresses the growing industry trend of expanding wireless infrastructure to accommodate an increasingly connected society.

For US Cellular, selling this portion of its wireless spectrum marks a significant shift in its business model as it seeks to refocus its operations on other growth areas. The transaction will allow US Cellular to reduce its debt burden and gain liquidity for future investments.