T-Mobile and UScellular File Public Interest Statement on Proposed Deal

T-Mobile and UScellular made the case why T-Mobile’s proposed buy of “substantially all” of the smaller carrier’s wireless operations, including some of its spectrum (see 2405280047), makes sense for customers. In a public interest statement on the proposed transaction, they wrote, “The Transaction will increase competition across the UScellular footprint and not result in any competitive harm.” T-Mobile has “a well-established track record of using improvements in network performance and increased capacity to deliver greater value to consumers and enhance competition." The statement was posted Monday in docket 24-286, which the FCC created last week (see 2409110059). “Customers of both companies will experience significant benefits from increased network capacity, higher speeds, and reduced congestion within the UScellular footprint,” the companies said: “UScellular customers will have the choice to switch to a lower-cost T-Mobile plan or remain on their current UScellular rate plan, all while enjoying a world-class 5G network.” The filing said the deal won’t affect T-Mobile pricing, “which is generally lower than prices for comparable UScellular plans.” It emphasizes that about 40% of UScellular subscribers live in rural markets and the buy “will result in an enhanced user experience and faster and better 5G service for the rural customers of both companies.” Nearly all of UScellular’s customer devices are compatible with T-Mobile’s network and “migration of the vast majority of UScellular customers can be accomplished almost immediately after closing via an over-the-air software update,” the filing said. Much of the data was redacted from the public filing, including estimated monthly savings for UScellular customers, the combined capacity of the network that will be available to those subscribers and the number of households expected to gain access to T-Mobile’s Home Internet service. The companies told the FCC they don’t “have an overlapping competitive presence” in 74 of the cellular market areas (CMAs) affected, which is 37% of the markets involved in the transaction. “Both before and after the Transaction, at least three nationwide facilities-based carriers (including T-Mobile) will provide competition in almost all CMAs in the UScellular footprint.” The filing comes ahead of T-Mobile’s Capital Markets Day, scheduled for Wednesday.