UScellular announces sale of select spectrum assets for $1.0 billion
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.
UScellular ha annunciato la vendita di alcuni beni di spettro per 1,0 miliardi di dollari. L'azienda ha raggiunto un accordo con Verizon Communications per vendere 663 milioni di MHz POPs di spettro cellulare, 11 milioni di MHz POPs di AWS e 19 milioni di MHz POPs di licenze PCS per 1,0 miliardi di dollari in contanti. Inoltre, UScellular ha accordi con altri due operatori di rete mobile per vendere 12 milioni di MHz POPs attraverso bande CBRS, C-Band e 700 MHz B/C Block.
Queste transazioni fanno parte dell'obiettivo di UScellular di monetizzare lo spettro non incluso nella vendita proposta a T-Mobile. Gli accordi sono soggetti ad approvazioni regolatorie e alle consuete condizioni di chiusura. Dopo queste transazioni, UScellular manterrà 3,4 miliardi di MHz POPs di spettro a bassa e media frequenza e 17,2 miliardi di MHz POPs di spettro mmWave. L'azienda continua a cercare opportunità per monetizzare questi beni mantenuti.
UScellular ha anunciado la venta de ciertos activos de espectro por 1.0 mil millones de dólares. La compañía ha alcanzado un acuerdo con Verizon Communications para vender 663 millones de MHz POPs de espectro celular, 11 millones de MHz POPs de AWS y 19 millones de MHz POPs de licencias PCS por 1.0 mil millones de dólares en efectivo. Adicionalmente, UScellular tiene acuerdos con otros dos operadores de red móvil para vender 12 millones de MHz POPs a través de bandas CBRS, C-Band y 700 MHz B/C Block.
Estas transacciones son parte del objetivo de UScellular de monetizar el espectro no incluido en la venta propuesta a T-Mobile. Los acuerdos están sujetos a aprobaciones regulatorias y condiciones de cierre habituales. Tras estas transacciones, UScellular retendrá 3.4 mil millones de MHz POPs de espectro de baja y media frecuencia y 17.2 mil millones de MHz POPs de espectro mmWave. La compañía continúa buscando oportunidades para monetizar estos activos mantenidos.
UScellular은 선택된 주파수 자산을 10억 달러에 판매한다고 발표했습니다. 이 회사는 Verizon Communications와 협력하여 6억 6천3백만 MHz POPs의 셀룰러 주파수, 1천1백만 MHz POPs의 AWS, 1천9백만 MHz POPs의 PCS 라이센스를 현금으로 10억 달러에 판매하기로 합의했습니다. 추가로, UScellular는 CBRS, C-Band 및 700 MHz B/C 블록 대역에서 1천2백만 MHz POPs를 판매하기 위해 두 개의 다른 이동통신 사업자와 협약을 맺었습니다.
이 거래들은 T-Mobile에 제안된 판매에 포함되지 않은 주파수를 수익화하려는 UScellular의 목표에 포함됩니다. 거래는 규제 승인 및 관례적인 종료 조건에 따라 달라집니다. 이러한 거래 이후, UScellular는 34억 MHz POPs의 저주파 및 중주파 스펙트럼과 172억 MHz POPs의 mmWave 스펙트럼을 보유하게 됩니다. 회사는 이러한 보유 자산을 수익화할 기회를 계속 모색합니다.
UScellular a annoncé la vente de certains actifs de spectre pour 1,0 milliard de dollars. L'entreprise a conclu un accord avec Verizon Communications pour vendre 663 millions de MHz POPs de spectre cellulaire, 11 millions de MHz POPs d'AWS et 19 millions de MHz POPs de licences PCS pour 1,0 milliard de dollars en espèces. De plus, UScellular a des accords avec deux autres opérateurs de réseau mobile pour vendre 12 millions de MHz POPs à travers les bandes CBRS, C-Band et 700 MHz B/C Block.
Ces transactions font partie de l'objectif d'UScellular de monétiser le spectre qui n'est pas inclus dans la vente proposée à T-Mobile. Les accords sont soumis à des approbations réglementaires et aux conditions habituelles de clôture. À la suite de ces transactions, UScellular conservera 3,4 milliards de MHz POPs de spectre à basse et moyenne fréquence et 17,2 milliards de MHz POPs de spectre mmWave. L'entreprise continue de rechercher des opportunités pour monétiser ces actifs conservés.
UScellular hat den Verkauf ausgewählter Spektrumgüter für 1,0 Milliarden Dollar angekündigt. Das Unternehmen hat eine Vereinbarung mit Verizon Communications getroffen, um 663 Millionen MHz POPs von Mobilfunkspektrum, 11 Millionen MHz POPs von AWS und 19 Millionen MHz POPs von PCS-Lizenzen für 1,0 Milliarden Dollar in bar zu verkaufen. Darüber hinaus hat UScellular Vereinbarungen mit zwei anderen Mobilfunkanbietern, um 12 Millionen MHz POPs in den CBRS-, C-Band- und 700 MHz B/C Block-Bändern zu verkaufen.
Diese Transaktionen sind Teil des Ziels von UScellular, nicht in den vorgeschlagenen Verkauf an T-Mobile einbezogenes Spektrum zu monetarisieren. Die Geschäfte unterliegen regulatorischen Genehmigungen und üblichen Abschlussbedingungen. Nach diesen Transaktionen wird UScellular 3,4 Milliarden MHz POPs an Niedrig- und Mittelband-Spektrum sowie 17,2 Milliarden MHz POPs an mmWave-Spektrum behalten. Das Unternehmen sucht weiterhin nach Möglichkeiten, diese gehaltenen Vermögenswerte zu monetarisieren.
- Sale of select spectrum assets for $1.0 billion, providing significant value realization
- Agreement with Verizon for $1.0 billion in cash for specific spectrum licenses
- Additional agreements with two mobile network operators for sale of other spectrum licenses
- Retention of 3.4 billion MHz POPs of low and mid-band spectrum and 17.2 billion MHz POPs of mmWave spectrum
- Transactions contingent upon closing of proposed sale of UScellular wireless operations to T-Mobile
Insights
This spectrum sale is a significant financial move for UScellular, with a
The strategic implications are twofold:
- It generates immediate cash, strengthening UScellular's balance sheet
- It aligns with the company's stated objective to monetize spectrum not included in the proposed T-Mobile sale
Importantly, UScellular retains 3.4 billion MHz POPs of low and mid-band spectrum and 17.2 billion MHz POPs of mmWave spectrum, leaving room for future monetization or strategic use. The involvement of multiple advisors, including Citigroup and Centerview Partners, underscores the complexity and importance of these transactions.
For investors, this move signals a clear focus on unlocking value from UScellular's spectrum holdings, which could potentially lead to improved financial flexibility or returns to shareholders.
This spectrum sale marks a significant shift in the U.S. telecom landscape. Verizon's acquisition of UScellular's Cellular (850 MHz) spectrum is particularly noteworthy, as it bolsters Verizon's low-band coverage capabilities. This could enhance Verizon's network performance, especially in rural areas where 850 MHz propagates well.
The sale of AWS and PCS licenses, though smaller in scale, adds capacity to Verizon's network in specific markets. The additional sales to two unnamed operators further redistribute spectrum assets in the industry, potentially impacting competitive dynamics.
UScellular's retention of substantial low, mid and high-band spectrum holdings post-sale is intriguing. It suggests the company is maintaining strategic flexibility, possibly for future network development or additional monetization opportunities.
This transaction, contingent on the T-Mobile deal, reflects the ongoing consolidation and spectrum reallocation in the U.S. wireless market. It underscores the high value placed on spectrum assets and the strategic maneuvering of carriers to optimize their network capabilities in the 5G era.
"We are pleased that significant value for a portion of the remaining licenses will be realized," said Laurent C. Therivel, President and CEO, "and, importantly, that these agreements with multiple mobile network operators ensure that this spectrum will be put to work for consumers throughout the country. We are continuing the process to opportunistically monetize the remaining spectrum assets not included in today's announcement."
Transaction Details
UScellular reached an agreement with Verizon to sell 663 million MHz POPs of its Cellular (850 MHz) spectrum licenses as well as 11 million MHz POPs of its AWS and 19 million MHz POPs of its PCS licenses for a total of
In addition, UScellular reached agreements to sell a total of 12 million MHz POPs of its spectrum licenses across the CBRS, C-Band, and 700 MHz B/C Block bands to two additional mobile network operators. These transactions are subject to regulatory approval and satisfaction of customary closing conditions. Buyers and terms have not been disclosed.
Each transaction is contingent upon the closing of the proposed sale of the UScellular wireless operations and select spectrum assets to T-Mobile.
Other Transaction Details
TDS, in its role as the 82 percent shareholder of UScellular, has delivered its written consent approving the Verizon transaction. No further action by UScellular's shareholders will be needed or solicited in connection with these transactions.
Retained Spectrum
Following these transactions, UScellular's retained spectrum will represent 3.4 billion MHz POPs of low and mid-band spectrum (700 MHz, 3.45GHz, CBRS and C-Band) as well as 17.2 billion MHz POPs of mmWave spectrum. UScellular is continuing the process to opportunistically monetize these retained assets.
Advisors
Citigroup Global Markets Inc. is serving as lead financial advisor and Centerview Partners LLC is serving as financial advisor to TDS. TD Securities (
About UScellular
United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to customers with 4.5 million retail connections in 21 states. The
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the previously announced transaction whereby UScellular has agreed to sell its wireless operations and selected spectrum assets to T-Mobile will be successfully completed or whether UScellular will be able to find buyers at mutually agreeable prices for its remaining spectrum assets; whether these transactions will have an adverse impact on UScellular's business; and other risks and uncertainties more fully described under "Risk Factors" in the most recent filing of UScellular's Form 10-K, as updated by any UScellular Form 10-Q filed subsequent to such Form 10-K.
For more information about UScellular, visit: www.uscellular.com
View original content:https://www.prnewswire.com/news-releases/uscellular-announces-sale-of-select-spectrum-assets-for-1-0-billion-302279983.html
SOURCE United States Cellular Corporation
FAQ
What is the total value of UScellular's (USM) spectrum asset sale?
Who is the primary buyer of UScellular's (USM) spectrum assets?
What types of spectrum is UScellular (USM) selling to Verizon?
Are there other buyers involved in UScellular's (USM) spectrum sale?
What spectrum assets will UScellular (USM) retain after these transactions?
