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DOJ Clears T-Mobile’s Acquisition of UScellular, Flags Spectrum Concerns

The agency found faster data speeds justify the merger despite warnings about spectrum concentration; ultimate clearance now rests with the FCC

A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton
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T-Mobile logo displayed in front of a stock market chart.

Overview

  • The Justice Department declined to seek an injunction against T-Mobile’s $4.4 billion deal to acquire UScellular after a detailed antitrust probe
  • Investigators determined UScellular’s limited scale would lead to network decline absent the merger and that T-Mobile’s integration offers immediate speed and rural coverage gains
  • The Antitrust Division raised alarms that the transaction would further concentrate over 80 percent of mobile wireless spectrum in the hands of the Big 3 carriers
  • Assistant Attorney General Gail Slater warned the DOJ remains poised to challenge future spectrum aggregation that could block the rise of a fourth national competitor
  • Pending FCC approval, T-Mobile has discontinued its diversity, equity and inclusion programs to address regulatory objections