T-Mobile has agreed to buy most of U.S. Cellular in a deal worth about $4.4 billion that would bring the self-proclaimed “un-carrier” more than 4 million new customers as well as its retail stores and about 30 percent of U.S. Cellular’s wireless spectrum. U.S. Cellular would hang on to 70 percent of its spectrum and towers and lease much of it back to T-Mobile, which was already leasing its infrastructure. T-Mobile says it plans to use the added spectrum to improve its service in rural areas, which constitute the bulk of U.S. Cellular’s footprint.

Conversely, the deal will enable T-Mobile to offer U.S. Cellular’s customers to graduate “from a roaming experience outside of the U.S. Cellular coverage area” to nationwide 5G access, according to T-Mobile’s announcement. That’s no doubt how the magenta firm will pitch it to regulators expected to scrutinize the deal in light of the ongoing consolidation of the wireless industry.

“U.S. Cellular will lease space on at least 2,100 additional towers to T-Mobile,” writes CNBC, noting “the deal will also allow T-Mobile to sign new long-term leases on at least 2,015 U.S. Cellular-owned towers and extend existing leases on about 600 others.”

Those terms will create a “revenue stream from a strong anchor tenant for at least 15 years after the close of the transaction,” according to a U.S. Cellular press release.

Though the proposed spectrum allocation has yet to be disclosed, T-Mobile tells CNET it has its sights set on “U.S. Cellular’s 600MHz and 2.5GHz holdings alongside additional airwaves.”

The transaction will be “a combination of cash and up to $2.0 billion of debt to be assumed by T-Mobile through an exchange offer to be made to certain U.S. Cellular debtholders prior to closing,” T-Mobile said. U.S. Cellular customers will be able to keep their current plans or switch to a T-Mobile plan.

“U.S. Cellular parent Telephone & Data Systems last year offered the business for sale as its subscriber base was wavering and the value of wireless airwaves continued to climb,” explains The Wall Street Journal.

T-Mobile, which is owned by Deutsche Telekom, paid $1.35 billion last year to acquire Mint Mobile parent Ka’ena Corp. In 2020 T-Mobile merged with Sprint in a deal valued at $26 billion.

If approved by regulators, the U.S. Cellular deal is expected to close in mid-2025. “If the deal fails to go through, T-Mobile will pay U.S. Cellular a termination fee of $60 million,” Reuters reports. T-Mobile’s market cap is currently $196 billion.