T-Mobile told the FCC that it plans to use the spectrum acquired from UScellular to expand its fixed wireless access service to rural markets. It also claims the deal will help it compete with cable operators expanding into mobile services.
T-Mobile is arguing that the FCC should approve its $4.4 billion transaction for UScellular, and about 30% of its licensed spectrum, which was announced in May.
“The transaction will … expand T-Mobile’s fixed wireless service offering and thereby increase competition for in-home broadband services,” T-Mobile said in a heavily redacted public interest statement to the FCC. “This will be particularly important for bringing increased competition and choice to rural areas.”
The missive added, “Cable companies’ entry into the wireless market has been particularly threatening to UScellular.”
The deal would see T-Mobile acquire all 4 million of UScellular’s customers. UScellular will retain its approximately 4,400 towers and enter new 15-year lease agreements with T-Mobile on about half of them, as well as extend leases on the 600 towers where T-Mobile is already a tenant.
UScellular’s reach includes 4.5 million customers across 21 states, with about 40% of the service base focused in rural areas.
T-Mobile also argued that the purchase would help drive down prices for consumers.
Unfortunately, all relevant metrics were redacted in the filing, which was first noticed by Ted Hearn's PolicyBand newsletter.
“UScellular’s current rate plans are generally more expensive than comparable rate plans offered by T-Mobile,” T-Mobile wrote to the FCC. “Following the transaction, UScellular customers will have the opportunity to pay the same or less for higher quality service than either UScellular or T-Mobile offers today.”
