ICLE Issue Brief Examines Competitive Effects of Proposed T-Mobile/UScellular Merger
PORTLAND, Ore. (Dec. 16, 2024) – T-Mobile’s proposed $4.4 billion acquisition of UScellular does not appear to pose any notable competitive harms and could generate significant consumer benefits via increased competition among wireless providers, a new International Center for Law & Economics (ICLE) issue brief concludes.
Authored by ICLE Senior Scholars Eric Fruits and Ben Sperry and Director of Innovation Policy Kristian Stout, the brief notes that, as a struggling regional carrier with significant structural disadvantages, UScellular provides no meaningful competitive constraints on a major national carrier like T-Mobile.
“T-Mobile’s acquisition of UScellular is primarily motivated by a strategic objective to enhance its network capabilities, particularly in areas where UScellular currently holds a stronger position,” the authors write. “The acquisition would provide T-Mobile with access to UScellular’s spectrum assets, allowing for aggregation and more efficient spectrum utilization.”
In reviewing the transaction, the authors argue that the Federal Communications Commission (FCC) and the U.S. Justice Department (DOJ) should be sure to define the relevant market to include not just other national wireless carriers, but also cable providers.
“The rapid growth of cable-wireless providers—particularly Xfinity Mobile and Spectrum Mobile—is expected to exert significant competitive pressure on ‘traditional’ wireless carriers,” the authors write. “Cable-wireless providers leverage their existing cable infrastructure and bundled service offerings to attract customers, often at lower prices.”
The full issue brief can be downloaded here. To schedule an interview with the authors, contact ICLE Media and Communications Manager Elizabeth Lincicome at (919) 744-8087 or [email protected].