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The transaction is part of UScellular’s ongoing efforts to monetise its remaining spectrum assets, having sold the majority of its wireless operations to T-Mobile earlier this year
UScellular has reached a $1 billion agreement with Verizon to sell part of its spectrum holdings, the company has announced.
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.
The sale is subject to regulatory approvals and other standard conditions.
In addition to this agreement with Verizon, UScellular has struck deals with two additional unnamed mobile carriers to sell more spectrum, including licenses in the CBRS (Citizens Broadband Radio Service; i.e., 3550–3700 MHz), C-Band, and 700 MHz bands.
“We are pleased that significant value for a portion of the remaining licenses will be realized,” said Laurent C. Therivel, President and CEO of UScellular in a press release.
“And, importantly, that these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country. We are continuing the process to opportunistically monetize the remaining spectrum assets not included in today’s announcement.”
The sale has already been approved by UScellular’s majority shareholder, Telephone and Data Systems (TDS), which owns 82% of the company. Financial advice for the deal was provided by Citigroup and Centerview Partners LLC, amongst others.
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.
“In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile.” said said LeRoy T. Carlson, Jr., Chair of the Board of Directors of UScellular at the time.
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