AT&T Acquires UScellular Amid Shift in Strategy

AT&T announced last week it was dropping all policies and programs dedicated to diversity, equity, and inclusion initiatives in a bid to adjust to an evolving legal landscape. The announcement coincided with AT&T seeking approval for a $1 billion acquisition of UScellular, which is now known as Array Digital Infrastructure.

The Federal Communications Commission approved the transaction after AT&T pledged to eliminate DEI from its employment and business practices. In a filing submitted to the FCC on December 1, AT&T stated that it does not and will not have any positions that focus on DEI, nor will it base hiring, training, or career development opportunities on race, gender, or other protected characteristics.

The FCC noted that the acquisition would help enhance AT&T's network capacity, coverage, speed, and overall performance. AT&T's decision aligns with the current administration's stance on DEI, as FCC Chair Brendan Carr has made the elimination of such programs a requirement for companies seeking approval for mergers and acquisitions.

This move follows similar actions taken by other telecommunications companies, including Verizon and T-Mobile, which also ended their DEI programs to secure FCC approvals. A report from The Conference Board revealed that S&P 500 companies have used the acronym DEI 68% less in securities filings this year compared to 2024, with 21% removing or reducing DEI metrics or targets in their filings.