Say goodbye to the US’s last major regional wireless carrier

America’s largestwireless carrierskeep getting bigger, as they have the most active users and some of the best coverage within the US, meaning that there’s little to no chance for other smaller carriers to compete against the likes of Verizon, T-Mobile, and AT&T, who offer excellent data plans and device deals. Competition has intensified after the Magenta carrier’s merger with Sprint in 2020 and its recent acquisition of Mint Mobile. Still, it seems that T-Mobile isn’t stopping there, as new information suggests it will acquire part of another regional wireless carrier, with Verizon taking up what’s left.

T-Mobile and Verizon Pac-Man trying to take a part of US Cellular

The future of US Cellular, a regional wireless carrier, hangs in the balance. It is rumored to be preparing to sell its operations and spectrum licenses to T-Mobile and Verizon. According toThe Wall Street Journal, if this deal goes through, both buyers would gain access to the company’s wireless spectrum licenses. Of course, each operation is being carried out separately, with Magenta getting closer to signing a deal that could be closed in the upcoming weeks, and an estimated value of $2 billion for a nice piece of the pie.

Ryan Reynolds and T-Mobile CEO Mike Sievert standing in front of green screen

In contrast, Verizon’s transaction is expected to take longer, and some even believe that might not happen, which could end up hurting the split-sale structure of this operation. Remember that any acquisition has to be approved by antitrust authorities, who will determine whether or not this deal will hurt the competition. Either way, Verizon will remain the largest US carrier, followed closely by T-Mobile, which seems to be determined to take the first spot.

US Cellular Coverage Map

Why is US Cellular giving up?

Source: US Cellular

A T-Mobile coverage map on a smartphone.

US Cellular currently serves more than four million customers across 21 states. It has a market value of $3 billion. Still, the rising value of wireless licenses makes it hard to compete in this business, as some companies have spent more than $100 billion to grab hold of the necessary technology and tools to provide fast and efficient services. The market has also evolved, as the largest carriers now sell devices with subscription plans and installments, keeping them locked to this or that network, making it harder for small fish to survive in a tank with three massive sharks.