FCC wants to know if you oppose T-Mobile and UScellular's deal as shady old transactions surface
T-Mobile's proposed acquisition of UScellular assets is in the final throes of review, with the Federal Communications Commission (FCC) now proceeding to the next step in the process.
T-Mobile wants to purchase 30 percent of UScellular’s licensed spectrum, its wireless operations, and its customers. The deal would bring T-Mobile 10 to 131.5 megahertz of spectrum in more than 800 counties across the US.
The FCC is now inviting comment on the transaction. If anyone has any objection to the deal, they must file a petition by December 9. The filing should include all the issues they want to raise against the proposed transaction.
This process, known as a pleading cycle, is often followed when the FCC is making an important decision.
T-Mobile execs had previously indicated that they were confident about the deal getting approved by mid-2025. Both T-Mobile and UScellular claim that customers of both companies would be better off after the acquisition.
One possible issue that could derail or delay the process is an accusation from attorneys Mark O’Connor and Sara Leibman, who say UScellular bought spectrum meant for small and minority-owned businesses through the FCC’s designated entity (DE) initiative. UScellular allegedly used shell companies to buy discounted spectrum.
The estimated value of spectrum acquired this way is $400 million, which is a small figure when compared to T-Mobile’s deal which is valued at $4.4 billion.
It must be noted that O’Connor and Leibman are not opposed to the deal per se and believe that it will benefit UScellular’s customers. However, they want UScellular to be held accountable for the shady deal and are hoping that the FCC will delay making a decision on the proposed transaction before UScellular is reprimanded for its actions.
T-Mobile wants to purchase 30 percent of UScellular’s licensed spectrum, its wireless operations, and its customers. The deal would bring T-Mobile 10 to 131.5 megahertz of spectrum in more than 800 counties across the US.
This process, known as a pleading cycle, is often followed when the FCC is making an important decision.
T-Mobile execs had previously indicated that they were confident about the deal getting approved by mid-2025. Both T-Mobile and UScellular claim that customers of both companies would be better off after the acquisition.
The estimated value of spectrum acquired this way is $400 million, which is a small figure when compared to T-Mobile’s deal which is valued at $4.4 billion.
It must be noted that O’Connor and Leibman are not opposed to the deal per se and believe that it will benefit UScellular’s customers. However, they want UScellular to be held accountable for the shady deal and are hoping that the FCC will delay making a decision on the proposed transaction before UScellular is reprimanded for its actions.
We do not object to T-Mobile or Verizon as purchasers of USCellular’s spectrum, but we oppose USCellular’s attempt to sell off its valuable assets, including spectrum currently held by its designated entities, before it is held accountable.
Sara Leibman, Sara Leibman Consulting, October 2024
T-Mobile and UScellular say that since the objections are not related to this particular transaction, they should be disregarded.
According to analysts, this complaint is unlikely to play into the US government's decision to approve the deal.
According to analysts, this complaint is unlikely to play into the US government's decision to approve the deal.
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