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

Core Insights - T-Mobile US Inc. is considered one of the most undervalued telecom stocks, with a recent acquisition of UScellular for $4.4 billion, finalized on August 1 [1] - The company has increased its annual run-rate synergy expectations from the UScellular acquisition by 20%, now targeting approximately $1.2 billion in synergies [2] - T-Mobile anticipates significant financial impacts from the acquisition, including ~$400 million in service revenue and ~$125 million in Core Adjusted EBITDA for Q3 2025 [3] Group 1: Acquisition Details - The acquisition of UScellular includes its wireless operations, customers, stores, and 30% of its spectrum assets [1] - The integration timeline for achieving synergies has been accelerated to approximately 2 years, compared to the initial expectation of 3 to 4 years [2] Group 2: Financial Expectations - The revised synergy target consists of ~$950 million in operating expenses and ~$250 million in capital expenses [2] - T-Mobile expects ~$100 million in integration costs and about $175 million in depreciation and amortization expenses related to the acquisition [3] - The acquisition is projected to impact T-Mobile's consolidated Postpaid ARPA by approximately $1.50 in Q3 2025 [3]