U.S. Cellular Closes $1 Billion Deal to Sell…

UScellular agreed to a deal to sell spectrum to Verizon for $1 billion in cash and entered into agreements with two other wireless carriers to sell additional licenses.

Verizon is purchasing 663 million MHz POPs of UScell's 850 MHz spectrum licenses, as well as 11 million MHz POPs of its AWS and 19 million MHz POPs of its PCS licenses.

Most of UScell's customers are located in rural areas. Before agreeing to sell some of its wireless assets and spectrum to T-Mobile US for $4.4 billion, the company had 4.5 million wireless customers in 21 states.

AST SpaceMobile uses Verizon's 850 MHz low-band spectrum to connect customers across the Americas with satellite services.

“Verizon has chosen the puzzle pieces that best fit its network,” said Roger Entner, founder and analyst at Recon Analytics Mobile World Live. “$1 billion is a reasonable amount for what Verizon is buying. There are not that many carriers that have the resources and need for spectrum where U.S. Cellular operates.”

USzellular has also entered into agreements with two additional mobile network operators to sell 12 million MHz POPs of spectrum in the CBRS, C-band and 700 MHz B/C block band. Buyer and terms of these offers are not available.

The deals must obtain standard regulatory approvals and are also contingent on UScell ​​completing its agreement with T-Mobile, which it said could happen by mid-2025.

Once these transactions are completed, UScell's remaining spectrum will include 3.4 billion MHz POPs of low and mid-band spectrum (700 MHz, 3.45 GHz, CBRS and C-band) and 17.2 billion MHz POPs of the mmWave spectrum include.

Laurent Therivel, president and CEO of UScellular, said the company will “continue the process of opportunistically monetizing the remaining spectrum resources not included in today’s announcement.”