A deal announced in late May for wireless giant T-Mobile to acquire most of US Cellular’s assets is now under scrutiny in a letter sent from six US senators to the Department of Justice asking it to consider challenging the deal.
As first reported by MSNBC, the letter penned by Democratic Sens. Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota, and signed by four others, suggests the $4.4 billion deal will raise prices and decrease wireless options for customers.
As part of the acquisition, T-Mobile would acquire 4.5 million customers from the fourth-largest carrier, US Cellular. It would also get the company’s retail stores and access to its wireless network. US Cellular would retain 70% of its network and towers and lease the remainder to T-Mobile. US Cellular customers in the 21 states where the company operates would have access to T-Mobile’s wireless network and have the option to switch to T-Mobile plans and service. The deal would be finalized sometime in mid-2025.
Emails to the offices of Warren and Klobuchar, and to T-Mobile and US Cellular, seeking comment on the letter were not immediately returned.
T-Mobile’s acquisition of Mint Mobile, which closed earlier this year, helped propel it to become the nation’s second-largest wireless carrier. According to Statista.com, T-Mobile’s biggest competitors are Verizon, which leads the wireless market, and AT&T. In 2002, the Federal Communications Commission opened the door to cellular company consolidations by removing caps on wireless spectrum ownership. This has largely resulted in a handful of major players providing voice and data services to hundreds of millions of wireless devices. But as the wireless giants continue to expand their networks and invest in infrastructure, service prices keep rising for consumers, especially when factoring in taxes and fees.
According to MSNBC, the letter asks the DOJ and the FCC to examine ways the consolidation could negatively affect consumers. It also says that T-Mobile’s previous $26 billion merger with Sprint, finalized last year, had the effect of costing wireless customers billions of dollars.
In May, T-Mobile was denied a request to dismiss a class-action lawsuit related to the Sprint merger by the 7th Circuit Court of Appeals.
Read the full article here
