T-Mobile’s uscellular purchase delayed by FCC staffing issues

T-Mobile’s plan to buy UScellular’s wireless operations is facing a setback. The deal, announced in May 2024, was expected to close by mid-2025, but the Federal Communications Commission (FCC) is holding things up. The main issue? The FCC doesn’t have enough staff to review the agreement quickly. This has frustrated both companies, who were counting on a smoother process.

The purchase involves T-Mobile paying $2.4 billion in cash and taking on $2 billion of UScellular’s debt. In return, T-Mobile would get UScellular’s customers, stores, and about 30% of its wireless spectrum, which helps improve network coverage. The companies met with the FCC in early May to push for a faster review, but the staffing shortage is causing delays.

This isn’t the first time T-Mobile has faced long waits for regulatory approval. Its Sprint acquisition took over 700 days, and even the simpler Mint Mobile deal took 413 days. Critics, including consumer groups and smaller wireless providers, are also raising concerns. They worry about job losses and whether the deal benefits the public, pointing to unkept promises from T-Mobile’s past mergers.

UScellular, based in Chicago, serves 4.4 million customers across 21 states and has 4,100 employees. Its parent company, Telephone and Data Systems, owns 83% of the business. The delay has forced UScellular to postpone its 2025 stockholders’ meeting, originally set for May, until the deal’s timeline is clearer. For now, both companies are waiting for the FCC and the Justice Department to give the green light, hoping for a resolution soon.