US Cellular will sell select spectrum licenses to AT&T in a $1.02 billion cash deal, continuing to monetize the spectrum not part of the proposed sale to T-Mobile.
A spectrum license allows carriers to use certain wireless bands for phone and data services in a given area. US Cellular has been selling them since announcing a $4.4 billion agreement with T-Mobile, a subsidiary of Deutsche Telekom, to sell some of the spectrum assets along with almost all of its wireless operations and subscribers to T-Mobile. This latest sale includes the 700 MHz and the 3.45 GHz bands, enablkng AT&T to expand its coverage to rural areas and make its 5G service more reliably in densely poulater areas.
"This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses," said C. Therivel, President and CEO of US Wireless. "As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the US." He ensured customers wouldn't experience service interruptions in the interim period.
In October, US Cellular announced it was selling a portion of the retained spectrum licenses to Verizon "and two other mobile network operators" for $1 billion. Thus far, the regional carrier has managed to monetize about 55 percent of its spectrum holdings (excluding mmWave bands) that weren't part of the T-Mobile deal, valued at approximately $2.02 billion (including the latest AT&T deal). As T-Mobile already has 30 percent of US Cellular's spectrum assets, the company has effectively monetized 70 percent of its total spectrum holdings.
The company also plans to sell C-band licenses, positioned "in an attractive mid-band frequency" that can deliver fast transfer speeds and enough capacity. US Cellular will continue to look for "ways to opportunistically monetize the C-band" and the other remaining spectrum. T-Mobile will use spectrum licenses from US Wireless to expand its network coverage and bolster 5G connectivity, particularly in underserved rural areas. US Cellular subscribers can retain their existing plans or switch to T-Mobile's unlimited plans without additional costs.
The deal with T-Mobile should close in mid-2025, pending regulatory approval.
Source: US Wireless