TDS Sees DOJ Investigation Closure, T-Mobile Deal Still Pending FCC Approval

Telephone and Data Systems (TDS) and United States Cellular Corporation have announced that the Antitrust Division of the US DOJ has concluded its examination of their planned transaction with T-Mobile. However, the deal still requires approval from the Federal Communications Commission (FCC). TDS has extended bank maturities and amended revolvers to ensure liquidity and has made progress on its 2025 priorities, including the anticipated mid-2025 closing of the transaction with T-Mobile.

Title: US DOJ Closes Investigation into T-Mobile-UScellular Transaction; FCC Approval Remains Pending

The United States Department of Justice (DOJ) has closed its investigation into the proposed transaction between T-Mobile, UScellular, and Telephone and Data Systems (TDS), marking a significant step forward in the process [1]. Despite the DOJ's decision, the transaction remains subject to approval by the Federal Communications Commission (FCC) and will continue to undergo an independent assessment by the regulatory body.

The DOJ's closure of the investigation does not imply an endorsement of the transaction. Instead, it reflects the agency's assessment that the deal, while potentially leading to market consolidation, does not pose an immediate threat to competition. The DOJ had previously raised concerns about the high level of consolidation in the wireless industry but ultimately did not block the transaction, noting that UScellular's smaller size would have eventually led to its demise without the deal.

UScellular, with 4.4 million retail connections across 21 states, is expected to benefit from improved network quality and services as T-Mobile integrates its operations [2]. The transaction involves the sale of UScellular's wireless operations and select spectrum assets to T-Mobile, which will position the latter to offer a more extensive range of wireless services and spectrum licenses once the deal is finalized.

Telephone and Data Systems (TDS) has taken steps to ensure liquidity and has extended bank maturities and amended revolvers to facilitate the transaction [3]. The company has also made progress on its 2025 priorities, including the anticipated mid-2025 closing of the transaction with T-Mobile.

The FCC's independent assessment is ongoing, and the transaction is subject to regulatory approval and the satisfaction of all closing conditions. Industry stakeholders and regulatory bodies will closely watch the potential impact on competition and market dynamics as the transaction progresses.

References:
[1] https://www.ainvest.com/news/doj-closes-investigation-mobile-transaction-uscellular-2507/
[2] https://www.gurufocus.com/news/2973248/uscellular-announces-fcc-approval-for-sale-of-wireless-operations-and-select-spectrum-assets-tds-stock-news
[3] https://www.prnewswire.com/news-releases/uscellular-announces-fcc-approval-for-sale-of-wireless-operations-and-select-spectrum-assets-302503636.html