United States Cellular Corp Secures $1 Billion Selling Spectrum Licenses to AT&T
- UScellular is selling spectrum licenses to AT&T as part of its strategy to enhance revenue and address its retained assets.
- This agreement supplements previous deals with Verizon and totals approximately $2.02 billion in spectrum sales.
- The sale is expected to significantly improve AT&T's network capabilities and community support across the U.S.
In November 2024, United States Cellular Corp (UScellular) reached an agreement to sell spectrum licenses to AT&T for approximately $1.018 billion. This sale is part of UScellular’s strategy to monetize remaining spectrum assets and follows prior sales to Verizon. The agreement allows AT&T to expand its network capabilities across the United States and is expected to enhance service in various communities. Laurent C. Therivel, President and CEO of UScellular, expressed confidence in the deal's potential to generate value for the company while ensuring AT&T's access to essential spectrum for network development. This transaction involves selling 1,250 million MHz-Pops of 3.45 GHz licenses and 331 million MHz-Pops of 700 MHz B/C block licenses. These decisions align with UScellular’s broader strategy announced in May 2024, intending to capitalize on spectrum assets excluded from the T-Mobile transaction. Following this sale and previous agreements, UScellular has monetized around 55% of its spectrum holdings, with total deals reaching approximately $2.02 billion. Once the T-Mobile sale is completed, UScellular expects to have contracts to monetize about 70% of its spectrum and maintain significant holdings for future opportunities. All transactions are subject to regulatory approvals and other closing conditions. The sale also includes licenses partially owned by a third party, compounding the complexity of the transaction. Overall, this development marks a significant step in AT&T’s strategy to enhance its network reach and service offerings in the competitive telecommunications market.