T-Mobile now has increased confidence in a specific deal or transaction.

T-Mobile finalized its purchase of UScellular stores and 30% of its spectrum on August 1st, acquiring low-band spectrum in the 600 MHz and 700 MHz ranges. This deal enhances T-Mobile's holdings, notably the 2.5 GHz mid-band spectrum utilized for its 5G Ultra Capacity service. The transaction was valued at $4.3 billion, including $2.6 billion in cash and $1.7 billion of assumed UScellular debt.

Following the acquisition, T-Mobile has updated its synergy targets, which refer to the financial benefits expected from combining the companies. COO Srini Gopalan stated the company is increasing and accelerating its synergy target with UScellular. He added that T-Mobile plans to extend its value proposition, including its network, to UScellular customers, while also improving the network for its existing subscribers.

According to a press release, T-Mobile now anticipates annual cost savings of approximately $1.2 billion from the UScellular transaction, a 20% increase from the initially projected $1.0 billion.

Operating expense synergies are now estimated at $950 million, while capital expenditure synergies are projected to be $250 million. These savings are expected upon full integration of UScellular assets.

The integration is now projected to take about two years, faster than the original three-to-four-year estimate. T-Mobile intends to reinvest a portion of these savings to improve consumer options and competition in the wireless market. The company expects to spend $2.6 billion to achieve these synergies.

The acquisition is also expected to impact T-Mobile's financials in the following ways:

Service revenues of approximately $400 million

Core Adjusted EBITDA of approximately $125 million

Around $100 million in integration costs, excluded from Core Adjusted EBITDA, and about $175 million in depreciation and amortization expenses.

The acquisition of UScellular's lower Postpaid ARPA base, along with postpaid accounts from the Metronet joint venture, will lower T-Mobile's consolidated Postpaid ARPA by about $1.50 in Q3. The company expects to improve ARPA through integration.

Excluding UScellular and Metronet, T-Mobile anticipates a Postpaid ARPA growth of at least 3.5% for 2025 compared to 2024.

T-Mobile expects higher churn rates from UScellular to negatively impact its financials, though strong T-Mobile postpaid net additions should offset this. The company also anticipates about $120 million in additional expenses related to amortization, integration, and depreciation.

T-Mobile's shares have increased by 26.8% over the past year and by 14.9% since the beginning of 2025. The company closed on Thursday at $252.12, resulting in a market capitalization of $283.7 billion.

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