UScellular announces sale of select spectrum assets to AT&T for $1.018 billion

Core Viewpoint - United States Cellular Corporation has entered into an agreement with AT&T to sell a portion of its retained spectrum licenses for $1.018 billion, as part of a strategy to monetize spectrum not included in the proposed sale to T-Mobile [1][2]. Transaction Overview - The agreement involves the sale of 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses for a total of$1.018 billion, payable in cash with potential adjustments [5]. - Following this transaction, UScellular will have monetized approximately 55% of its spectrum holdings (excluding mmWave), totaling around $2.02 billion, and approximately 70% when including the proposed T-Mobile transaction [2]. Spectrum Holdings - After the proposed sales, UScellular will retain 1.86 billion MHz-Pops of low and mid-band spectrum and 17.2 billion MHz-Pops of mmWave spectrum, with a significant portion of retained value in the C-band spectrum [3]. - The C-band licenses are positioned in an attractive mid-band frequency, beneficial for speed and capacity, with a robust 5G ecosystem supporting them [4]. Regulatory and Approval Aspects - The transaction with AT&T is contingent upon the closing of the sale of UScellular's wireless operations and select spectrum assets to T-Mobile, requiring regulatory approvals [6][7]. - TDS, the majority shareholder of UScellular, has provided written consent for the AT&T transaction, eliminating the need for further shareholder action [8]. Company Background - United States Cellular Corporation offers a range of wireless products and services, serving 4.5 million retail connections across 21 states, with 83% ownership by Telephone and Data Systems, Inc. as of September 30, 2024 [10].