CCIA Raises Alarm Over T-Mobile, UScellular Merger

WASHINGTON, Dec. 10, 2024 – Another influential voice has raised concerns over T-Mobile’s proposed $4.4 billion acquisition of UScellular. 

The Computer & Communications Industry Association urged the Federal Communications Commission on Monday to carefully evaluate the deal, warning that the deal could lead to higher consumer prices — a sign that the merger does not serve the public interest. 

CCIA’s comments noted that since T-Mobile acquired Sprint in 2020, wireless prices have risen despite promises to the contrary. “Earlier this year T-Mobile notified its users of significant rate increases for a number of legacy calling plans,” wrote Stephanie Joyce, CCIA’s senior vice president, in the filing. 

CCIA, which represents a diverse array of technology including Google, Amazon, and Meta, as well as prominent telecommunications firms BT Group and Dish Network, highlighted the risks of eliminating a regional competitor like UScellular, which it described as a “maverick firm” challenging pricing norms in an increasingly concentrated industry. 

“In light of the considerable risk of higher prices for consumers from the elimination of a competitor in an already highly concentrated market, the agencies should carefully analyze the potential anticompetitive risks of the proposed transaction,” the comments stated.

The merger, currently under FCC review, would see T-Mobile acquire 4 million UScellular customers and approximately 30% of its spectrum.

CCIA's comments emphasized that this transaction would also exacerbate existing imbalances in spectrum holdings, stating “as of July 2022, the three nationwide service providers, AT&T, T-Mobile, and Verizon Wireless, together held approximately 78% of all the spectrum included in the spectrum screen.”

That figure does not take into account additional spectrum sales to Verizon and AT&T, which UScellular recently announced as part of its exit from the wireless market.

UScellular has defended the transaction as necessary to address financial challenges, citing mounting debt and competitive pressures from both traditional carriers and cable companies like Comcast and Charter. CEO Laurent Therivel argued in October the merger would offer customers improved service at lower prices. A spokeswoman for T-Mobile declined to comment.

The deal is also under review at the Department of Justice, which requested the FCC to pause its evaluation to allow time for a routine national security analysis tied to T-Mobile’s majority ownership by Deutsche Telekom, a German company. Such reviews are standard practice when foreign ownership is involved in transactions of this scale.

While analysts expect the merger to move forward, CCIA and other stakeholders are urging the FCC to closely examine the deal’s long-term implications for competition and consumers.