US Cellular sells 5G network spectrum T-Mobile didn't get to AT&T
After T-Mobile's purchase of US Cellular's assets announced earlier this year closes, AT&T will scoop some of the spectrum assets that T-Mobile won't get in a $1.018 billion deal.
US Cellular says that AT&T will pay it for 1,250 million MHz-Pops of 3.45 GHz spectrum and 331 million MHz-Pops of 700 MHz B/C block licenses that AT&T needs to build out its 5G network faster.
Currently, T-Mobile is passing regulatory scrutiny over the $4.4 billion purchase of US Cellular’s stores, customers, and cellular network. The carrier, however, kept nearly 70% of its spectrum holdings and is now selling them to the highest bidder.
It already sold some to Verizon, disposing of 55% of its holdings to date, and continues selling with the AT&T deal, as what's left are the most sought-after mid-band frequencies at the prized C-band spectrum that both Verizon and AT&T bank on for their 5G networks expansion, as well as some mmWave holdings.
We are pleased with the significant value that will be realized in the various transactions recently announced. 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. As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S. Furthermore, the terms of the agreement will ensure that there will be continued, uninterrupted service for UScellular customers in the interim.
Laurent C. Therivel, President and CEO of US Cellular, November '24
TDS, the big US Cellular shareholder, has already approved the sale, but the deal with AT&T will only go through if T-Mobile closes its acquisition and US Cellular manages to acquire some of the purchased spectrum licenses from a third party owner.
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