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United States Cellular Corporation (NYSE: USM), headquartered in Chicago, is a prominent regional wireless carrier with approximately 4.5 million retail connections across 21 states. Serving regions such as the Midwest, mid-Atlantic, New England, and the Pacific Northwest, UScellular's operations cover a population of about 32 million people. The company primarily serves rural areas and second/third-tier cities, with notable exceptions being the greater Milwaukee and Oklahoma City regions.
UScellular provides a comprehensive range of wireless products and services, bolstered by excellent customer support and a high-quality network. Unlike many of its peers, UScellular owns the majority of its towers, which gives it a unique competitive edge. The company also holds a 5.5% stake in Verizon Wireless' Los Angeles operations. In recent developments, UScellular has agreed to sell its wireless operations and 30% of its spectrum assets to T-Mobile for $4.4 billion, with the transaction expected to close in mid-2025.
Financially, UScellular reported total operating revenues of $950 million for the first quarter of 2024, and a net income attributable to shareholders of $18 million. The company has maintained financial discipline, focusing on postpaid ARPU growth and expense management, despite challenging market conditions. UScellular's recent strategic decision to explore a range of alternatives, including the sale to T-Mobile, aims to enhance shareholder value and position the company for long-term growth.
In addition to its core wireless services, UScellular's tower assets represent one of the largest tower businesses in the United States. Post-transaction, T-Mobile will become a long-term tenant on over 2,600 of these towers, ensuring continued service and creating a stable revenue stream for UScellular. The company also retains significant spectrum assets and equity method investments, which generated $158 million in income and $150 million in distributions in 2023.
UScellular remains committed to its mission of connecting people to what matters most, striving to improve network quality, expand 5G services, and maintain strong customer relationships. For more information, visit UScellular.
TDS and UScellular have announced their participation in two upcoming conferences. At the Wells Fargo 8th Annual TMT Summit Conference on December 3, 2024, UScellular's CFO Doug Chambers will present at 1:15 p.m. ET. Subsequently, at the Raymond James 2024 TMT and Consumer Conference on December 9, 2024, TDS Telecom President Jim Butman and UScellular VP Fred Lubeley will present at 1:40 p.m. ET.
TDS serves approximately 6 million connections nationwide through UScellular and TDS Telecom. UScellular currently maintains 4.5 million retail connections across 21 states, with TDS owning approximately 83% of UScellular as of Q3 2024.
UScellular has announced an agreement to sell select spectrum assets to AT&T for $1.018 billion. The deal involves 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses. This transaction is part of UScellular's strategy to monetize spectrum not included in the T-Mobile sale. Following this and previously announced transactions, UScellular will have agreements to monetize about 70% of its total spectrum holdings, representing approximately $2.02 billion in total consideration. The company will retain 1.86 billion MHz-Pops of low and mid-band spectrum, plus 17.2 billion MHz-Pops of mmWave spectrum.
UScellular (NYSE:USM) reported Q3 2024 results with total operating revenues of $922 million, down from $963 million year-over-year. Service revenues decreased to $747 million from $762 million. The company reported a net loss of $79 million ($0.92 per share), compared to net income of $23 million ($0.26 per share) in Q3 2023. The results include a $136 million license impairment charge related to high-band spectrum. The company announced spectrum sales worth $1 billion to Verizon and additional sales to other operators. Based on improving metrics, UScellular raised its 2024 Adjusted EBITDA guidance to $970-$1,045 million.
Telephone and Data Systems (TDS) and United States Cellular (USM) announced they will release their third quarter operating results on November 1, 2024. The companies will host a conference call and webcast at 9:00 a.m. Central Time on the same day. TDS provides wireless, broadband, video, and voice services to approximately 6 million connections nationwide through UScellular and TDS Telecom. The company, founded in 1969 and headquartered in Chicago, employed about 8,500 associates as of June 30, 2024.
UScellular has announced the sale of select spectrum assets for $1.0 billion. The company has reached an agreement with Verizon Communications to sell 663 million MHz POPs of Cellular spectrum, 11 million MHz POPs of AWS, and 19 million MHz POPs of PCS licenses for $1.0 billion in cash. Additionally, UScellular has agreements with two other mobile network operators to sell 12 million MHz POPs across CBRS, C-Band, and 700 MHz B/C Block bands.
These transactions are part of UScellular's objective to monetize spectrum not included in the proposed sale to T-Mobile. The deals are subject to regulatory approvals and customary closing conditions. Following these transactions, UScellular will retain 3.4 billion MHz POPs of low and mid-band spectrum and 17.2 billion MHz POPs of mmWave spectrum. The company continues to seek opportunities to monetize these retained assets.
TDS Telecom and UScellular, subsidiaries of Telephone and Data Systems, Inc. (NYSE: TDS), have announced their participation in two upcoming September conferences. TDS Telecom will present at Citi's 2024 Global TMT Conference on September 5, with Michelle Brukwicki, senior VP of finance & CFO, speaking. UScellular will attend the 2024 RBC Capital Markets Global Communications Infrastructure Conference on September 25, with Doug Chambers, EVP, CFO & Treasurer, hosting one-on-one meetings.
TDS, founded in 1969 and headquartered in Chicago, provides wireless, broadband, video, voice, and IT services to approximately 6 million connections nationwide through its businesses. As of June 30, 2024, TDS employed about 8,500 associates and owned approximately 82% of UScellular, which had 4.5 million retail connections in 21 states.
Ericsson (NASDAQ: ERIC) and UScellular (NYSE: USM) are collaborating to enhance 5G transport infrastructure in rural America. The partnership leverages Ericsson's Router 6000 portfolio, including the new Router 6671, to improve high-speed internet access and support mid-band spectrum deployment. UScellular is the first customer globally to deploy Router 6671, showcased at MWC 2024.
This initiative aims to close the digital divide by providing reliable backhaul, site deployment flexibility, and advanced synchronization for superior RAN performance. The collaboration is expected to boost local economies and enable modern digital services such as precision agriculture, smart farms, remote education, and telemedicine in rural communities.
UScellular (NYSE:USM) reported Q2 2024 results with total operating revenues of $927 million, down from $957 million in Q2 2023. Service revenues decreased to $743 million from $760 million year-over-year. Net income attributable to shareholders improved to $17 million ($0.20 per diluted share) compared to $5 million ($0.05 per share) in Q2 2023.
Key highlights include:
- Announced sale of wireless operations and select spectrum assets to T-Mobile
- Postpaid ARPU grew 2%, while service revenues decreased 2%
- Fixed wireless customers grew 40% to 134,000
- Strong cost management led to increased operating income, net income, and Adjusted OIBDA
UScellular reaffirmed its 2024 guidance, projecting service revenues of $2,950-$3,050 million and Adjusted OIBDA of $750-$850 million.
Telephone and Data Systems, Inc. (NYSE: TDS) and United States Cellular (NYSE: USM) have announced their upcoming second quarter operating results conference call, scheduled for August 2, 2024, at 9:00 a.m. Central Time. The companies will release their financial results before the market opens on the same day. Investors can access the webcast through the events & presentations pages on the respective company websites. TDS, founded in 1969 and headquartered in Chicago, provides wireless, broadband, video, voice, and IT services to approximately 6 million connections nationwide through its subsidiaries UScellular, TDS Telecom, and OneNeck IT Solutions. As of March 31, 2024, TDS employed about 8,600 associates.
T-Mobile (NASDAQ: TMUS) announced its acquisition of UScellular’s wireless operations, including customers, stores, and certain spectrum assets. This move aims to enhance T-Mobile’s 5G network, especially in rural areas, offering improved connectivity and value-packed plans. The transaction, valued at approximately $4.4 billion, comprises cash and up to $2 billion of debt assumption. T-Mobile expects around $1 billion in annual cost synergies post-integration, with completion anticipated by mid-2025. The acquisition promises to spur competition, improve customer experiences, and expand T-Mobile's market reach.
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