T-Cell desires to buy 30 p.c of UScellular’s licensed spectrum, its wi-fi operations, and its clients. The deal would carry T-Cell 10 to 131.5 megahertz of spectrum in additional than 800 counties throughout the US.
The FCC is now inviting touch upon the transaction. If anybody has any objection to the deal, they have to file a petition by December 9. The submitting ought to embrace all the problems they wish to increase towards the proposed transaction.
This course of, referred to as a pleading cycle, is usually adopted when the FCC is making an necessary resolution.
T-Cell execs had beforehand indicated that they had been assured concerning the deal getting accredited by mid-2025. Each T-Cell and UScellular declare that clients of each firms can be higher off after the acquisition.
One attainable challenge that would derail or delay the method is an accusation from attorneys Mark O’Connor and Sara Leibman, who say UScellular purchased spectrum meant for small and minority-owned companies by the FCC’s designated entity (DE) initiative. UScellular allegedly used shell firms to purchase discounted spectrum.
The estimated worth of spectrum acquired this manner is $400 million, which is a small determine when in comparison with T-Cell’s deal which is valued at $4.4 billion.
It have to be famous that O’Connor and Leibman are usually not against the deal per se and imagine that it’ll profit UScellular’s clients. Nevertheless, they need UScellular to be held accountable for the shady deal and are hoping that the FCC will delay making a choice on the proposed transaction earlier than UScellular is reprimanded for its actions.
We don’t object to T-Cell or Verizon as purchasers of USCellular’s spectrum, however we oppose USCellular’s try and unload its worthwhile belongings, together with spectrum presently held by its designated entities, earlier than it’s held accountable.
Sara Leibman, Sara Leibman Consulting, October 2024
In line with analysts, this grievance is unlikely to play into the US authorities’s resolution to approve the deal.
