UScellular sells spectrum to AT&T for $1 billion 

News 

The deal follows a similar one with Verizon last month 

UScellular has announced a deal to sell part of its spectrum assets to AT&T for $1.018 billion. This transaction is part of the company’s strategy to monetise spectrum not included in its earlier agreement with T-Mobile. AT&T joins Verizon and other carriers in purchasing spectrum from UScellular as the company continues to streamline its holdings. 

Following this sale, UScellular will have sold around 55% of its spectrum assets, excluding mmWave. Including previous sales, the company has now monetised approximately 70% of its total spectrum. The remaining spectrum includes key low and mid-band frequencies, including valuable C-band spectrum, which is crucial for 5G expansion. 

“We are pleased with the significant value that will be realized in the various transactions recently announced,” said Laurent C. Therivel, President and CEO in a press release. 

“This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses.  As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S.  Furthermore, the terms of the agreement will ensure that there will be continued, uninterrupted service for UScellular customers in the interim,” he continued.

The transaction involves 1,250 million MHz-Pops of 3.45 GHz spectrum and 331 million MHz-Pops of 700 MHz B/C block licenses. 

However, the transaction will only close once UScellular’s ongoing sale of wireless operations to T-Mobile is completed, and regulators have given the deal the green light. The deal has already been approved by TDS, UScellular’s majority shareholder. Some of the licenses involved in this sale are owned by a third party, and UScellular is in the process of acquiring those assets.  

This move is part of UScellular’s broader strategy to optimise its spectrum portfolio and strengthen its position in the competitive wireless market. Last month, UScellular reached a $1 billion agreement with Verizon to sell part of its spectrum holdings. The deal includes spectrum licences in the 850 MHz band, as well as AWS (Advanced Wireless Services; i.e., 695–2200 MHz) and PCS (Personal Communications Services; i.e.,1850–1995 MHz) licenses.   

All of these transactions hinge on the closing of UScellular’s sale of wireless operations and select assets to T-Mobile, which was announced earlier this year. T-Mobile is set to acquire the majority of UScellular’s wireless operations, including its customers, retail stores, and around 30% of the company’s spectrum holdings, for $4.4 billion. 

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