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UScellular and TDS to Sell Wireless Operations and Spectrum Assets

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In Short:

United States Cellular Corporation (UScellular) and Telephone and Data Systems (TDS) have agreed to sell UScellular’s wireless operations and select spectrum assets to T-Mobile for $4.4 billion. T-Mobile will acquire UScellular’s wireless operations, spectrum assets, and tower assets, providing customers with more options and a better network experience. The deal is expected to close in mid-2025, pending regulatory approval.


UScellular and TDS Announce Sale of Wireless Operations and Select Spectrum Assets
United States Cellular Corporation (UScellular) and Telephone and Data Systems (TDS) have announced a definitive agreement to sell UScellular’s wireless operations and select spectrum assets to T-Mobile for a purchase price of USD 4.4 billion.

Transaction Overview

Under the terms of the agreement, T-Mobile will acquire UScellular’s wireless operations, including mobile customers and stores, as well as around 30 percent of spectrum assets across several spectrum bands. T-Mobile will also enter into a new master license agreement (MLA) for more than 2,000 towers.

The agreement follows a review process announced in August 2023 and has been recommended by UScellular and approved by the boards of directors of both UScellular and TDS, an 83 percent shareholder of UScellular.

Customer Benefits

T-Mobile’s purchase and integration of UScellular’s wireless operations, spectrum, and tower assets aim to provide customers with more options and a better network experience, according to the official release.

UScellular stated, “In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our strategic review, we are confident that continuing to deliver on our mission requires integration with T-Mobile.”

Tower Lease Extension

As part of the agreement, T-Mobile will enter into a long-term MLA for at least 2,015 towers owned by UScellular and extend the lease term for approximately 600 towers where T-Mobile is already a tenant for at least 15 years after the transaction’s close.

UScellular

UScellular will retain ownership of around 70 percent of its spectrum portfolio across several bands at close. The transaction is expected to be completed in mid-2025, pending regulatory approvals and customary closing conditions.

Based in Chicago, United States Cellular Corporation offers wireless products and services to customers, serving 4.5 million retail connections in 21 states.

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