Warren sounds alarm on T-Mobile, U.S. Cellular deal with Justice Department, FCC

WASHINGTON — A group of Democratic senators are sounding the alarm over T-Mobile’s proposal to acquire most of US Cellular, and asking the Justice Department and the Federal Communications Commission to closely scrutinize and consider challenging the deal.

The $4.4 billion deal announced in May 2024 would allow T-Mobile to use part U.S. Cellular’s wireless spectrum to improve its coverage in rural areas and give it access to four million new customers. In the letter, six Democrats wrote. that the plan would raise costs for customers and limit choices.

“Additional consolidation in the market would have far-reaching effects, reducing choices for consumers, further concentrating wireless spectrum holdings, and potentially leading to higher prices and other harms for consumers across the country,” the senators wrote in the letter, obtained exclusively by CNBC.

The letter was led by Sens. Elizabeth Warren (Mass.) and Amy Klobuchar (Minn.), with Sens. Chris Murphy (Conn.), Bernie Sanders (Vt.), Cory Booker (D-N.J.), and Richard Blumenthal (Conn.) co-signing.

Under the agreement, U.S. Cellular would retain 70% of its wireless spectrum and towers, leasing space on other towers to T-Mobile.

Warren and Klobuchar have previously raised concerns about T-Mobile’s acquisitions and merger with Sprint.

In Monday’s letter, the lawmakers also ask the Justice Department to consider unwinding that merger, arguing that it cost customers of competing wireless carriers billions of dollars.

The merger “eliminated a low-cost carrier from the market, reducing the competitive pressure on the remaining national wireless carriers to aggressively compete to lower their prices,” the letter said.

A spokesman for U.S. Cellular pointed to a statement released at the time the deal was announced, saying it would “provide more competitive choices for UScellular customers, as they will benefit from T-Mobile’s greater resources and ability to provide lower prices, more robust plans, and a better network experience.”

A spokesperson for T-Mobile said in a statement that the company has “a great track record when it comes to delivering competition-enhancing shifts that have benefited our customers and consumers and look forward to sharing more in our FCC filing in the coming months.”