T-Mobile, a U.S. wireless carrier, has received approval from the U.S. Department of Justice to proceed with its $4.4 billion acquisition of UScellular’s wireless operations, including its customers, retail stores, and 30% of its spectrum assets. The deal, announced in May 2024, is one of several large mergers endorsed by the Trump administration, which has adopted a more lenient stance on corporate consolidation. Gail Slater, Head of the Justice Department's antitrust division, said the department closed its investigation without seeking to block the transaction. “UScellular simply could not keep up with the escalating cost of capital investments in technology required to compete vigorously in the relevant market. This would, in turn, lead to the slow degradation of its network quality,” Slater stated.
Despite acknowledging risks to future competition, particularly the consolidation of wireless spectrum among Verizon, AT&T, and T-Mobile, collectively controlling over 80%, Slater said no evidence justified legal action to prevent the deal. “The risks to future competition due to further spectrum aggregation by the Big 3 are acute,” she added. The approval followed T-Mobile’s announcement that it would end its diversity, equity, and inclusion programs amid regulatory pressure. Shares of both companies saw modest gains following the news, with UScellular rising by 2% in after-hours trading.
