UScellular has agreed to sell $1 billion worth of spectrum to Verizon as it moves forward with a $4.4 billion acquisition of its wireless operations by T-Mobile US. This sale is part of UScellular’s broader plan to shift towards becoming an infrastructure-focused company. In addition to Verizon, UScellular has also made deals with two other mobile network operators (MNOs) to sell additional spectrum, as part of efforts to generate revenue from its unused assets.
The deal with Verizon includes the sale of 663 million megahertz (MHz) POPs of UScellular’s 850 MHz spectrum, along with 19 million MHz POPs of its PCS licenses and 11 million MHz POPs of AWS spectrum. Meanwhile, if the T-Mobile acquisition is approved, T-Mobile US will acquire most of UScellular’s 700 MHz, AWS, and PCS airwaves, as well as its entire 600 MHz, 2.5 GHz, and 24 GHz spectrum holdings.
While the buyers and details of the other spectrum deals remain undisclosed, UScellular is selling 12 million MHz POPs from its 700 MHz and C-Band holdings, as well as Citizens Broadband Radio Service (CBRS) shared spectrum. All of these transactions are pending regulatory approval and depend on the success of the T-Mobile deal.
Despite the sale of some assets, UScellular will retain 3.4 billion MHz POPs of spectrum, 4,400 towers, and various equity investments. The company is also establishing a 15-year lease agreement with T-Mobile for the use of at least 2,600 of its towers, which will ensure long-term revenue.
UScellular President and CEO Laurent Therivel expressed satisfaction with the value generated from these transactions and emphasized that the deals will benefit consumers across the country.
