T-Mobile US Increases Synergy Expectations, Accelerates Integration of UScellular Acquisition

T-Mobile US Inc. (NASDAQ:TMUS) is one of the most undervalued telecom stocks to invest in. On September 4, T-Mobile announced an update on its business transformation initiatives and provided revised guidance following the closure of its acquisition of UScellular. The $4.4 billion deal, which was finalized on August 1, included the acquisition of UScellular’s wireless operations, including customers, stores, and 30% of its spectrum assets.

T-Mobile increased its total annual run-rate synergy expectations from the UScellular acquisition by 20%, from the original $1.0 billion to ~$1.2 billion. This new target is comprised of ~$950 million in operating expenses and ~$250 million in capital expenses. Additionally, the company is accelerating the integration timeline, now expecting to achieve these synergies in ~2 years, a faster pace than the initial 3 to 4-year expectation.

For Q3 2025, T-Mobile anticipates the acquisition will result in several financial impacts. The company expects ~$400 million in service revenue and about $125 million in Core Adjusted EBITDA. The company also anticipates ~$100 million in integration costs and about $175 million in depreciation and amortization expenses. Additionally, the acquisition of UScellular’s lower Postpaid ARPA customer base, along with customers from the Metronet joint venture, is expected to impact T-Mobile’s consolidated Postpaid ARPA by ~$1.50 in Q3.

T-Mobile US Inc. (NASDAQ:TMUS) provides wireless communications services in the US, Puerto Rico, and the United States Virgin Islands.

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Disclosure: None. This article is originally published at Insider Monkey.