UScellular has announced a delay in its upcoming annual stockholder meeting, originally set for May 20, 2025. The wireless carrier attributed this postponement to the ongoing regulatory process surrounding its significant deal with T-Mobile, which involves the acquisition of UScellular's wireless customers and associated assets. This development signals a crucial juncture for both companies as they navigate the necessary approvals from federal agencies.
Last May, T-Mobile entered into an agreement to acquire UScellular's wireless customers, stores, and select spectrum assets for approximately $2.4 billion. Along with this cash outlay, T-Mobile agreed to assume $2 billion in UScellular debt. The deal stands to enhance T-Mobile's spectrum portfolio by 30%, incorporating various key frequency bands including 600 MHz, 700 MHz A Block, PCS, AWS, 2.5 GHz, and 24 GHz (mmWave).
Both parties aim to finalize the transaction in the middle of this year, which would add around 4 million subscribers to T-Mobile's existing customer base. Additionally, T-Mobile has indicated that a substantial number of UScellular employees will be offered positions within the company. However, the completion of this deal hinges on regulatory approval from the FCC and DOJ.
Due to the postponement of the stockholder meeting, UScellular will be required to file an amended Form 10-K/A with the Securities and Exchange Commission (SEC). This amendment will cover the year ending December 31, 2024, and will include elements typically presented in the Proxy statement during the stockholders' meeting.
T-Mobile has been actively pursuing acquisitions to bolster its market position. This strategy began with the monumental $26 billion acquisition of Sprint, finalized in April 2020, which was essential for securing a vast amount of 2.5GHz mid-band spectrum—critical for its 5G leadership. Since then, T-Mobile has also acquired Mint Mobile and Ultra Mobile.
Currently based in Chicago, UScellular serves approximately 4.4 million customers across 21 states, employing 4,100 full and part-time workers. The company is primarily owned by Telephone and Data Systems (TDS), which holds an 83% stake in UScellular. As of year-end 2024, T-Mobile reported a customer base of 129.5 million, which includes 104.3 million postpaid customers, 25.2 million prepaid customers, and 6.4 million High-Speed Internet customers.
Looking ahead, T-Mobile anticipates adding between 5.5 million and 6.0 million new postpaid customers in 2025.
