U.S. Cellular sells select spectrum assets for $1.0B

United States Cellular (USM) has entered into an agreement with Verizon (VZ) to sell a portion of the company’s retained spectrum licenses for total consideration of $1.0B. Additionally, UScellular has entered into agreements with two other mobile network operators for the sale of other selected spectrum licenses. The 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. UScellular reached an agreement with Verizon to sell 663 million MHz POPs of its Cellular – 850 MHz – spectrum licenses as well as 11 million MHz POPs of its AWS and 19 million MHz POPs of its PCS licenses for a total of $1.0B. 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 additional mobile network operators. Buyers and terms have not been disclosed. Each transaction is contingent upon the closing of the proposed sale of the UScellular wireless operations and select spectrum assets to T-Mobile (TMUS). Following these transactions, UScellular’s retained spectrum will represent 3.4 billion MHz POPs of low and mid-band spectrum as well as 17.2 billion MHz POPs of mmWave spectrum. UScellular is continuing the process to monetize these retained assets.