UScellular has just struck a billion-dollar deal with AT&T, selling a chunk of its valuable spectrum licenses for a whopping $1.018 billion. This transaction, announced today, aligns with UScellular’s ongoing strategy to monetize its spectrum assets not already earmarked for sale to T-Mobile.
CEO Therivel Calls Agreement a ‘Win-Win’ for Both Companies
UScellular’s President and CEO, Laurent C. Therivel, shared his enthusiasm for the deal, noting that it’s a win-win—benefitting both AT&T’s nationwide subscribers and UScellular’s bottom line. Therivel assured UScellular customers that their service would remain steady as the company proceeds with its strategic spectrum sales.
Recent Deals Position UScellular as a Key Spectrum Player
This isn’t the first of UScellular’s recent spectrum deals. Earlier agreements included a massive $4.4 billion transaction with T-Mobile to sell nearly all of its wireless operations, which covered customers, stores, and roughly 30% of its spectrum. Additionally, just last month, UScellular inked a deal with Verizon to sell more of its spectrum for around $1 billion. Therivel highlighted that with the AT&T sale, UScellular is now working with all four of the nation’s major carriers, bringing AT&T into the mix alongside T-Mobile and Verizon.
All told, with these recent moves, UScellular will have monetized about 70% of its spectrum holdings, excluding its high-frequency mmWave assets. This is a massive step forward as the company pivots to maximize the value of its spectrum portfolio, particularly its valuable C-band spectrum, a mid-band frequency that’s perfect for 5G development.
AT&T’s Expansive Strategy for High-Speed Internet Growth
The AT&T agreement includes the sale of licenses in the 3.45 GHz and 700 MHz B/C block frequencies, spanning millions of MHz-Pops—a technical measure for broadcast coverage. However, this deal, still subject to regulatory approval, also hinges on the finalization of the T-Mobile transaction.
Meanwhile, AT&T, whose recent earnings reflected mixed results, has been steadily expanding its high-speed internet reach. The telecom giant aims to hit 30 million fiber connections by the end of 2025, and partnerships like the recent multi-year deal with Corning for fiber products underline its commitment to growth.
AT&T’s moves haven’t gone unnoticed on Wall Street either. TD Cowen and Oppenheimer both recently raised their price targets for AT&T stock, with TD Cowen noting AT&T’s solid financials and Oppenheimer highlighting the company’s success in reducing debt.
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