T-Mobile: UScellular Integration Will Be Complete in 2 Years
T-Mobile expects to fully integrate UScellular assets into its network in two years, faster than its original expectation of three to four years, the carrier announced Thursday. T-Mobile finalized the $4.3 billion deal last month, giving it UScellular's wireless assets, including customers and spectrum (see 2508010012).
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T-Mobile now expects about $1.2 billion in total annual run-rate cost synergies following integration, up 20% from an earlier estimate of $1 billion, the company said. It projected service revenues of about $400 million in Q3 as a result of the purchase, with core-adjusted EBITDA of about $125 million. The carrier also said it’s “accelerating its move to a more streamlined and dynamic billing technology stack” to speed the transition, at a cost of about $350 million. T-Mobile's postpaid net additions are “expected to offset the impacts of the initially higher-churning UScellular base, and overall postpaid and postpaid phone customer guidance for the year is unchanged at this time as a result.”