The Department of Justice's Antitrust Division has concluded its investigation into the proposed acquisition of UScellular by T-Mobile. Assistant Attorney General Gail Slater announced that the division will not seek an injunction to prevent the merger, despite concerns about competition in mobile wireless services and spectrum availability.
Slater highlighted the impact on consumers, noting UScellular's unique approach to meeting customer needs compared to national carriers like Verizon, AT&T, and T-Mobile. The investigation considered how UScellular's disappearance might affect customers who valued its localized service offerings.
The department also examined potential consumer benefits if UScellular continued independently. Due to limited resources, UScellular struggled with necessary technology investments, risking network quality degradation. In contrast, T-Mobile promised faster data speeds for UScellular customers and broader rural coverage for its own users. This led the department to conclude that immediate network improvements outweighed losing local offerings.
The statement emphasized concerns about industry consolidation among the "Big 3" carriers controlling over 90% of U.S. mobile subscriptions. The department remains vigilant against spectrum aggregation that could hinder new competitors from emerging.
The DOJ stressed confidentiality obligations in its investigations and cautioned against drawing broad conclusions from this case for future transactions or collaborations.
