T-Mobile Confident Regulators Will Approve UScellular Buy
T-Mobile remains upbeat about its proposed buy of wireless assets from UScellular but still won't predict precisely when a regulatory review will be completed, Jon Freier, president of the T-Mobile Consumer Group, said at a Wells Fargo financial conference on…
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Tuesday. The companies announced the deal in May (see 2405280047). “This is one of those rare transactions that's so great for customers,” Freier said. “UScellular customers will have access to lower prices and more value as a result of this transaction.” He noted that 40%-50% of UScellular's assets are in rural markets that T-Mobile now is targeting. “We're confident in the approval of the overall transaction,” probably next year, he said. T-Mobile was pleased with the activity at its stores during Black Friday weekend, Freier said. But he said it’s too early to tell whether customers are more willing to upgrade handsets. “It's hard to know where upgrades are going,” he said. Low upgrade rates aren’t “a phenomenon that's exclusive to us; you're seeing that across the entire industry.” That's a “testament … to Apple and Samsung and Google making such great devices that are lasting longer and customers are keeping them longer.” Freier noted that 80% of T-Mobile postpaid customers already have a 5G phone, which could work against upgrades. He was also asked about customer perceptions that T-Mobile works well in dense urban areas and less well elsewhere. “We were a laggard in the 4G LTE era, way behind in terms of the network and the capability,” he acknowledged. Since closing the Sprint buy in 2020, T-Mobile has built an “incredibly powerful network” with 500,000 square miles of coverage in rural America, he said. Historically, T-Mobile was third in customer satisfaction, behind Verizon and AT&T, “and now we're nipping at the heels of being No. 1." Freier also said he has been reluctant to use AI as a “buzzword … just to hopefully impress people,” but T-Mobile is starting to use the technology for improvements in customer service. “We have billions of data points across tens of millions of customers that can help us improve their experience, that can help us improve their overall billing experience” and that means better human-assisted interactions, he said: That data hasn’t been put to its “best use just yet,” but “we have dreams about what we can … do in a much bigger way.”