UScellular recently reported a loss of 39,000 net postpaid phone subscribers in the first quarter, leaving the company with 3,946,000 postpaid customers. Despite this setback, the carrier continues to focus on deploying mid-band spectrum for mobile and fixed-wireless customers and saw a 6% increase in third-party tower rental revenue during the quarter. However, the carrier's revenue dropped by 6.2% to $891 million compared to the same quarter last year, with service revenue also declining slightly. The company's net income for Q1 was $18 million, with no financial guidance provided for 2025 due to the pending acquisition by T-Mobile.
Meanwhile, T-Mobile awaits approval from the FCC and DOJ for its acquisition of UScellular's wireless operations, including customers and retail stores. The deal, valued at $4.4 billion, will also see T-Mobile taking on $2 billion of UScellular debt. Despite the pending transaction, there have been conflicting views on the approval process, with advocates urging the FCC to take its time while others push for a swift decision.
UScellular's shares declined following the earnings report, while T-Mobile's shares witnessed an increase. The future of both companies remains uncertain as they navigate through the regulatory approval process and prepare for the potential changes ahead.
