On November 20, 2024, the Federal Communications Commission (FCC) referred T-Mobile US, Inc.’s proposed $4.4 billion acquisition of United States Cellular Corporation’s (UScellular) wireless operations to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, known as Team Telecom, for a thorough national security evaluation. This move underscores the government’s commitment to ensuring that foreign investments in critical infrastructure do not compromise national security interests.
The transaction involves T-Mobile acquiring approximately 30% of UScellular’s licensed spectrum, its wireless operations, and its customer base of about 4.5 million subscribers. UScellular will retain around 70% of its spectrum holdings and all of its approximately 4,400 towers. The deal includes T-Mobile entering into 15-year lease agreements for over 2,000 UScellular towers.
Team Telecom, an interagency body comprising representatives from the Departments of Justice, Defense, and Homeland Security, is tasked with assessing the national security implications of foreign participation in the U.S. telecommunications sector. The referral to Team Telecom is a standard procedure for transactions involving significant foreign ownership or control, ensuring that such deals do not pose risks to national security.
T-Mobile, majority-owned by Germany’s Deutsche Telekom, has previously undergone Team Telecom reviews, notably during its merger with Sprint in 2020. The current referral indicates a continued vigilance by U.S. authorities regarding foreign influence in critical communication networks.
In their joint Public Interest Statement filed with the FCC, T-Mobile, and UScellular emphasized the acquisition’s consumer benefits, stating that the transaction “will result in customers of both companies experiencing significant benefits from increased network capacity, higher speeds, reduced congestion, and improved service, particularly in rural parts of the country.”
The FCC has established a pleading cycle for the proposed transaction, with petitions to deny due by December 9, 2024, oppositions by January 8, 2025, and replies by January 28, 2025. The outcome of Team Telecom’s review will play a crucial role in the FCC’s final decision on the merger. As the telecommunications landscape evolves, ensuring foreign investments align with national security priorities remains a paramount concern for U.S. regulators.
