Page 103 - SAMENA Trends - May-June 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

T-Mobile Agrees to Buy UScellular Wireless Operations in $4.4bn Deal

The announcement confirms rumors
last month that suggested Verizon was
also in separate talks to purchase some
of UScellular’s assets T-Mobile has
announced an agreement to acquire the
majority of UScellular’s wireless operations,
including its customers, retail stores, and
certain spectrum assets. T-Mobile will pay
a total of $4.4 billion for UScellular’s assets
through a combination of cash and the
assumption of $2 billion of debt. As part
of the deal, T-Mobile will acquire roughly
30% of UScellular’s spectrum, the specifics
of which were not revealed. UScellular,
meanwhile, will keep the remaining 70%
of its spectrum assets, as well as its 4,400
mobile towers. T-Mobile will enter a long-
term agreement to lease space on “at least”
2,600 of these towers, UScellular said in its
press release. Once the deal is finalized,
UScellular’s 4 million (predominantly rural)
customers will gain full access to T-Mobile’s ability to provide lower prices, more robust The announcement of the deal follows
nationwide 5G network. The companies say plans, and a better network experience”. UScellular undergoing a strategic review
it “will provide more competitive choices for Customers will also have the option to in August 2023, which concluded that it
UScellular customers, as they will benefit switch to T-Mobile’s plans, which may was unable to continue funding its wireless
from T-Mobile’s greater resources and offer cost savings and additional benefits. operation independently.

Vodafone Offloads €1.7B Indus Towers stake

it with a stake of 3.1 per cent in the tower
company. Vodafone noted proceeds from
the sale of the 484.7 million shares to equity
investors would “substantially repay” debts
of €1.8 billion secured against its assets in
India. The operator group noted in its 2024
annual report (for the period to end March
2024) it had debt secured against its stakes
in Indus Towers and operator Vodafone
Idea. In a stock market statement Indus
Towers’ largest shareholder Bharti Airtel
announced it had bought almost 27 million
additional shares in the infrastructure
company to take its stake to close to 49
per cent. Reuters reported Vodafone had
originally planned to sell a stake of only
10 per cent in the business, but upped
this due to strong demand from investors.
Indus Towers is one of the largest telecom
infrastructure providers in India with more
Vodafone Group sold an 18 per cent stake be used to pay down debt secured against than 219,700 towers and a presence across
in India infrastructure player Indus Towers its assets in the country. The deal, which the country, the company’s website claims.
for INR153 billion (€1.7 billion), cash set to was rumored to be imminent earlier, leaves

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