T-Mobile US now has a clear path to aquire UScellular’s wireless business and a 50% stake in fiber operator Metronet
The U.S. Federal Communications Commission (FCC) has approved two significant transactions involving T-Mobile US, clearing the way for the wireless carrier to expand its reach across both mobile and broadband markets. The approvals come just days after T-Mobile announced it would eliminate all diversity, equity and inclusion (DEI) initiatives — a move that many believe garnered political favor with the Trump administration.
The first transaction allows T-Mobile to proceed with its $4.4 billion acquisition of UScellular’s wireless business. The second involves a joint venture with private equity firm KKR to acquire a 50% stake in Metronet, a fiber provider that serves more than 2 million homes and businesses across 17 states.
T-Mobile’s acquisition of UScellular, announced in May 2024, includes the transfer of most of UScellular’s wireless customers, retail stores, and about 30% of its spectrum holdings. One day before the FCC gave its green light, the U.S. Department of Justice (DOJ) also approved the transaction, despite concerns over market competition and growing spectrum concentration among the so-called “Big Three” carriers — T-Mobile, Verizon and AT&T.
“UScellular simply could not keep up,” said Assistant Attorney General Gail Slater. “Consumers would benefit from a stronger T-Mobile.” She noted that UScellular lacked the scale to invest competitively in its network, leading to a long-term decline in market share.
Blair Levin, policy advisor at New Street Research, echoed that assessment. “They were losing subscribers to the Big Three. Their pricing was higher because they lacked scale,” Levin told RCR Wireless News. He added that the acquisition is unlikely to materially affect underserved or rural markets, where UScellular had already been falling behind.
In its public filing, the FCC stated that the merger would “result in substantial public interest benefits, due in large part to increased network efficiencies and spectrum utilization.” The agency added that these synergies would improve T-Mobile’s fixed wireless access (FWA) service offerings, enabling higher speeds and broader coverage — particularly in rural areas. “In an economy increasingly dependent upon access to broadband services for innovation in a wide variety of sectors and services,” the filing said, “these network deployment synergies will yield significant public interest benefit.”
Questions around the viability of a fourth carrier
Despite clearing the deal, the DOJ emphasized that the wireless market is at an inflection point. “This review makes clear we stand at a pivotal moment for the wireless industry,” Slater said, noting that the Big Three now control more than 90% of the nation’s 335 million mobile subscriptions.
While regulators continue to signal a desire for more competition, Levin was blunt about the outlook for Dish Network — now operating under the EchoStar brand following their 2023 re-merger. “The path to a successful business is narrow and treacherous,” he said. “The most likely outcome is EchoStar selling spectrum to the Big Three.”
Although the DOJ has expressed concern about that scenario, Levin pointed out that it has no authority over spectrum sales — that power rests with the FCC. “And the FCC is very comfortable with three national carriers,” he added.
Fiber push: T-Mobile + KKR + Metronet
In addition to the UScellular transaction, the FCC approved a separate T-Mobile deal to acquire a 50% stake in Metronet through a joint venture with KKR. Metronet operates a fiber-optic broadband network in 17 states, and the investment is part of T-Mobile’s broader push into fixed broadband.
Levin, however, was skeptical of its strategic value. “It does nothing for the company strategically,” he said. “If they determine that they need terrestrial assets, they will need to do something much bigger. The only assets that would move the needle are Charter and Comcast.”
FCC signals broad policy direction
The FCC also approved a third deal last week: the transfer of licenses as part of satellite operator SES’ acquisition of rival Intelsat. In a statement addressing all three approvals, the agency said: “As part of the FCC’s Build America Agenda, the agency is working to unleash new builds, encourage greater investment, and expand network capacity. The FCC’s decisions this week further all of these goals while cutting across multiple different sectors of the communications market.”
