T-Mobile Acquiring US Cellular Wireless Operations
T-Mobile Acquiring US Cellular’s Wireless Operations
We have a breaking NEWS UPDATE here at Tower Genius, as reported by Inside Towers a leading wireless infrastructure magazine, the wireless (network) operations of US Cellular the USA’s fourth largest wireless carrier, are being purchased by T-Mobile for $4.4 billion cash.
US Cellular is a regional carrier, and has a market presence in 22 states in the USA, and US Cellular operates and owns over 4,500 towers. The deal is not a merger, and will not close until at least July 2025. U.S. Cellular will keep about 70% of its spectrum portfolio across several spectrum bands, so it is possible that in a particular market, US Cellular could still be operating on the US Cellular network, not on the T-Mobile network.
US cellular is different than the other three leading carriers Verizon Wireless, AT&T and T-Mobile in that they own and operate more cell phone towers than the other 3 top wireless carriers combined, who have sold off tens of thousands of their wireless infrastructure assets to cell tower management companies such as American Tower Corporation, Crown Castle International and SBA Communications. It is being reported that US Cellular will maintain ownership of their 4,500 cell phone towers, and T-Mobile plans on owning and operating their wireless network.
How will T-Mobile’s planned acquisition impact US Cellular cell phone tower landlords?
How will T-Mobile’s planned purchase of US Cellulars wireless network operations affect property owners leasing ground space to US Cellular? So, what does this mean for you if you are a US Cellular cell tower landlord with a US Cellular tower on your property. What we think it means, is that The US Cellular cell phone tower is probably not going anywhere, and at some point if this acquisition is approved by the US Government regulators, you’ll get a letter from US Cellular or T-Mobile or both of them, informing you that T-Mobile will now become a tenant or subtenant on US Cellular’s cell tower, and nothing will likely change with your cell tower lease rental payments.
Of course, this acquisition of US Cellular’s wireless operations still would need federal approval, and US Cellular will probably have to lose licenses in certain markets.
What will happen to your US Cellular cell tower rent if both US Cellular and T-Mobile are already utilizing the same tower location?
Your rent payment will likely still come from US Cellular. T-Mobile will pay rent to US Cellular to be able to use their towers. On US Cellular cell towers where both US Cellular and T-Mobile are sharing ground space adjacent to the cell tower as well as vertical real estate, there will be consolidation. Expect the more expensive lease to go away. Property owners can expect the sites will be worked on, and equipment will be swapped out, and these sites will be converted from US cellular sites to T-Mobile sites. Expect to have technicians on site and working on these on these towers to remove and add equipment and antennas.
If you have questions about your US Cellular cell phone tower lease agreement, or questions about the future of your US Cellular cell phone tower lease rental stream, please give us a call at Tower Genius anytime, our number is 1-888-313-9750, or you can fill out a contact form on this website, one of our team members will get back to you typically within 24 business hours or less.
Again, T-Mobile is acquiring US Cellular’s wireless operations for $4.4 Billion in cash, as reported this morning by Inside Towers.