T-Mobile CEO Sievert says that UScellular users will have better service and lower prices after the deal is approved.
T-Mobile‘s CEO said that UScellular customers will have a better network experience once T-Mobile takes control of the airwaves, subscribers, and network gear it is buying from UScellular. The latter provides wireless service mostly to Americans living in rural areas of the country. Besides experiencing better wireless service, Sievert says that UScellular customers will enjoy having to pay lower prices as they move over to T-Mobile‘s plans and services.
Once the FCC approves the acquisition, UScellular stores such as this one in Middleton, Wisconsin will be owned by T-Mobile. | Image credit-UScellular
Since the deal has yet to receive the required thumbs up from the FCC regulatory agency, Sievert still has to be careful what he says about the transaction in public forums. “We’re very confident, but we have to keep our heads down and go through the process and explain our case to all the parties involved,” the executive says.
With the deal, T-Mobile will take over 30% of UScellular’s spectrum, the carrier’s subscribers (located mostly in rural parts of the country), retail locations, and its network assets. The spectrum that T-Mobile is acquiring from UScellular includes low-band 600MHz airwaves that travel long distances but deliver slower data speeds. T-Mobile already uses 600MHz spectrum for its nationwide 5G service. The deal also includes some 700MHz low-band spectrum, 2.5GHz mid-band airwaves, and 24GHz millimeter wave (mmWave) spectrum.
Acquiring Sprint’s 2.5GHz mid-band spectrum was the main reason why T-Mobile purchased Sprint for $26.5 billion in a deal that closed in April 2020. This spectrum doesn’t travel as far as low-band airwaves but does cover more ground than mmWave signals. It is approximately 10 times faster than low-band but is not as fast as mmWave. These characteristics have earned the airwaves the title of “Goldilocks spectrum.”
T-Mobile’s shares hit a new all-time high today before reversing
Even though mmWave spectrum is not used much by T-Mobile, the deal with UScellular includes some 24GHz mmWave spectrum that T-Mobile can employ when needed.
After hitting a new all-time high earlier in the day at $234.56, sellers are making Mike Sievert sad as T-Mobile‘s shares have reversed and are now down $7.46 on the day, or 3.19% to $226.10. The stock is still up 39.65% for 2024 to date. There have been many complaints from T-Mobile subscribers that the carrier has shifted its focus from subscribers to stockholders.