UScellular (NYSE: USM) announced on Friday that it has agreed to sell a portion of its retained spectrum licenses to Verizon Communications (NYSE: VZ) for $1.0 billion. Additionally, UScellular has entered into agreements with two other mobile network operators to sell other selected spectrum licenses. These transactions are part of the objective UScellular announced on May 28, 2024, to opportunistically monetize the spectrum that was not included in the proposed sale to T-Mobile (NASDAQ: TMUS), Inside Towers reported.
UScellular will sell to Verizon 663 million MHz POPs of its cellular (850 MHz) spectrum licenses as well as 11 million MHz POPs of its AWS (1700/2100 MHz) and 19 million MHz POPs of its PCS (1900 MHz) licenses for a total of $1.0 billion. The purchase price is payable in cash and subject to certain potential adjustments specified in the purchase agreement.
In addition, UScellular reached agreements to sell a total of 12 million MHz POPs of its spectrum licenses across the CBRS, C-band, and 700 MHz B/C Block bands to two other MNOs. Those buyers and terms were not disclosed. Each of these transactions is contingent upon the closing of the proposed sale of the UScellular wireless operations and select spectrum assets to T-Mobile.
All these transactions are subject to regulatory approval and satisfaction of customary closing conditions. Telephone and Data Systems (NYSE: TDS), as the 82 percent shareholder of UScellular, has approved the Verizon transaction. No further action is required from UScellular’s shareholders, according to the company.
Following these transactions, UScellular’s retained spectrum will represent 3.4 billion MHz POPs of low and mid-band spectrum (700 MHz, 3.45GHz, CBRS and C-band) as well as 17.2 billion MHz POPs of millimeter wave spectrum. UScellular has spent nearly $1.9 billion in FCC mid-band spectrum auctions for C-band, 3.45 GHz, and CBRS licenses in its 21-state operating area.
“We are pleased that significant value for a portion of the remaining licenses will be realized,” comments Laurent C. Therivel, UScellular President and CEO, “and, importantly, that these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country.”
By John Celentano, Inside Towers Business Editor
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