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CONSUMER AFFAIRS

Bad news for T-Mobile, Verizon, and AT&T: customers have been left speechless

The three major operators face a serious setback they didn't anticipate, which causes them discomfort

The expansion plans of T-Mobile, Verizon, and AT&T could face serious difficulties. The three major telecommunications operators in the United States expected to divide UScellular's assets among themselves. However, a series of objections from organizations and smaller operators could halt or even modify the operation.

Although it seemed like a well-advanced purchase, everything is now in the hands of the Federal Communications Commission (FCC). It could stop or thoroughly review the transactions.

T-Mobile, the most interested operator

UScellular, the fourth largest wireless provider in the country, has decided to dismantle and sell its assets. T-Mobile submitted an offer to acquire most of its operations. This includes customers, physical stores, and about 30% of its network spectrum, in exchange for approximately 4.3 billion dollars.

Storefront of a T-Mobile shop with large pink advertising panels on the windows and two people walking on the sidewalk.
T-Mobile is the most interested in acquiring UScellular | Grok

Meanwhile, Verizon and AT&T plan to acquire the rest of the spectrum, with an additional investment of 1 billion. However, this apparent division of the pie has not been well received by many voices in the sector.

A coalition of organizations has asked the FCC to review the entire set of transactions as a single operation and not individually. Among these entities are the Rural Wireless Association, the Communications Workers of America, and the Benton Institute. They all believe that the plan would unfairly benefit T-Mobile, Verizon, and AT&T, limiting opportunities for smaller companies.

According to these groups, if the agreements are analyzed separately, it is more difficult to detect their true impact on the market. They fear that this move will strengthen the dominance of the three major operators over the spectrum, a key tool for providing mobile services. Additionally, they warn that this could hinder the growth of virtual mobile operators and complicate the expansion of services in rural areas.

Man surprised pointing at a T-Mobile store.
T-Mobile customers don't know yet how it might affect them | Vkstudio, en.edatv.news, T-Mobile

Impatience at T-Mobile

T-Mobile doesn't hide its impatience. The company expected to close the deal with UScellular by mid-2025, but the FCC has not yet given the green light. T-Mobile executives have requested a quick resolution, reminding that they have already acquired other companies like Mint Mobile, Ultra Mobile, and the fiber optic firm Lumos.

However, pressure from consumer advocates and smaller operators could force the FCC to take more time. The big question is whether the Commission will agree to analyze the transactions separately or, as many are asking, decide to examine them together. This way, they can accurately assess their impact on competition.

For now, T-Mobile, Verizon, and AT&T will have to wait. The path to greater market consolidation will be slower and more complicated than they expected.

➡️ Consumer Affairs

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