A new controversy is stirring in the telecom world. T-Mobile’s plan to acquire UScellular’s spectrum, retail stores and wireless services is facing serious backlash. Several industry groups, public advocates, and a leading labor union are urging regulators to block the deal, warning that it could harm rural customers and drive up prices.

Why the Deal is Raising Concerns

T-Mobile and UScellular claim that the merger will improve coverage in remote areas and increase competition. But not everyone agrees. A coalition of critics including the Rural Wireless Association (RWA), EchoStar, the Communications Workers of America (CWA), Public Knowledge, New America’s Open Technology Institute, the Benton Institute for Broadband & Society, and the Computer & Communications Industry Association (CCIA)  have joined forces to oppose the deal. They believe it will reduce competition, hurt rural communities, and lead to higher costs.

Rural Communities Could Lose Network Access

One of the biggest concerns is the impact on rural customers. Right now, UScellular plays an important role in keeping remote areas connected. With the help of the Universal Service Fund (USF), UScellular provides mobile service in small towns where big telecom companies usually avoid investing.

If T-Mobile takes over, this could change. The coalition fears that T-Mobile may not want to spend money maintaining networks in less profitable rural areas, especially without financial support from USF. This could result in network towers shutting down, leaving rural communities without reliable coverage.

Additionally, taxpayers’ money that has been used over the years to build these rural networks could go to waste. The fear is that small towns and remote areas will be left behind and disconnected.

Customers Could Face Another Price Hike

Another major worry is rising prices. Critics point to what happened after T-Mobile merged with Sprint. Back then, T-Mobile promised to keep prices stable for five years, but once that period ended, they quietly increased their rates.

Now, the same fear is being raised again. If this new merger is approved, T-Mobile will hold even more power, with fewer competitors to challenge it. This could make it easier for them to raise prices, leaving customers with higher bills and fewer choices.

Less Competition, More Control

The deal could also give T-Mobile too much control over the wireless market. If it goes through, T-Mobile will gain not only UScellular’s customers but also a large share of spectrum licenses, the essential airwaves needed to run mobile networks.

This would put most of the country’s wireless spectrum in the hands of just three big players: T-Mobile, AT&T, and Verizon. When only a few companies dominate the market, smaller networks struggle to compete. In the long run, this could leave consumers with fewer options and higher prices.

T-Mobile’s Spectrum Advantage Could Grow

T-Mobile has already become the leader in mid-band spectrum after its merger with Sprint. That move made it harder for smaller carriers to compete. Now, critics argue that acquiring UScellular’s spectrum will widen the gap even more.

With more spectrum under T-Mobile’s control, there will be fewer chances for smaller, local carriers to expand their networks. This will especially affect rural areas, which may face slower progress in 5G coverage and fewer choices in mobile service.

Workers’ Jobs at Risk

The impact of this merger isn’t limited to customers, it could also hurt workers. When T-Mobile merged with Sprint, nearly 30% of its retail stores were shut down, and over 21,000 employees lost their jobs.

The fear is that history may repeat itself. If T-Mobile takes over UScellular, it’s likely to close overlapping stores, putting many more workers at risk of losing their jobs.

Customers Might Get Stuck

Another concern is about customer freedom. The coalition believes that after the merger, T-Mobile could delay or restrict handset unlocking for UScellular customers. This would make it difficult for users to switch to another network, effectively trapping them with T-Mobile.

To prevent this, the coalition has urged the FCC to set a rule that requires T-Mobile to allow handset unlocking before the deal is approved.

A More Concentrated Market

The telecom market is already dominated by a few big companies. If UScellular exits the market, that control will grow even tighter. UScellular isn’t just a competitor, it’s also a vital roaming partner for many smaller carriers, especially in rural areas. Without UScellular, these small networks may struggle to offer reliable service.

The coalition has asked the FCC to take a broader view of the wireless market. They want regulators to consider not only this merger but also recent spectrum sales to AT&T and Verizon, which have made the market even more concentrated.

Additionally, FCC Chairman Brendan Carr has reminded telecom companies that if they want merger approvals, they must avoid any discrimination under Diversity, Equity and Inclusion (DEI) guidelines.

In an interview with MSNBC, Carr explained:

“We can only under the statute move forward and approve a transaction if we find that doing so serves the public interest. If there are businesses out there that are still promoting invidious forms of DEI discrimination, I really don’t see a path forward where the FCC could reach the conclusion that approving the transaction is going to be in the public interest.”

He made it clear that FCC approvals will only be given if the deal benefits the public. According to him, companies pushing unfair DEI practices won’t be able to meet that standard.

Carr’s opinion reflects the approach of former President Donald Trump’s administration, which has been against DEI policies in both government and corporate sectors.

In the past, Carr has openly criticized Verizon over its DEI policies. Last month, he posted on X:

“I expect all regulated businesses to end invidious forms of discrimination.”

He also sent a letter to Comcast about their DEI practices.

Currently, Verizon is working on a deal with Frontier, which is expected to be finalized next year. That deal is under discussion with the FCC.