AT&T has announced its intent to purchase spectrum worth over $1 billion from UScellular. This transaction involves 1,250 million MHz-POPs of 3.45 GHz and 331 million MHz-POPs of 700 MHz B/C block licenses. Laurent Therivel, UScellular President and CEO, acknowledged the significant value from these transactions, enhancing network capabilities for T-Mobile, Verizon, and other operators.
The strategic sale represents about 55% of UScellular’s spectrum by MHz-POP, excluding millimeter-wave holdings. The company retains around 30% of its spectrum, with opportunities for future monetization. This move is part of UScellular’s broader strategy to transition into a telecom infrastructure provider. Despite a decline in operating revenues and net income, its Fixed Wireless Access customer base has grown by 32% year-over-year.
Therivel indicated that the sale to T-Mobile US is on track for mid-2025. T-Mobile US plans to acquire UScellular’s wireless operations, subscribers, and some spectrum for approximately $4.4 billion. Notably, UScellular will maintain ownership of around 4,400 towers and other key spectrum assets. This transaction solidifies UScellular’s position as the fifth-largest tower company in the US.
In a related move, UScellular has agreed on another spectrum sale to Verizon for about $1 billion, involving 850 MHz licenses and other frequencies. If approved, T-Mobile will gain significant airspace, including the 700 MHz A block and additional spectrum in various bands.
These deals reflect UScellular’s shift in focus, aligning with industry trends towards infrastructure and Fixed Wireless Access services. The successful closure of these agreements hinges on the completion of transactions with T-Mobile US and consent from stakeholders such as TDS, UScellular’s majority shareholder.
