Verizon and Unnamed Carriers Buying UScellular Licenses

UScellular announced on Friday a $1 billion agreement to sell Verizon some of its spectrum licenses, which are not part of the proposed sale of wireless assets to T-Mobile (see 2405280047). T-Mobile is buying “substantially all” of UScellular’s wireless operations in a deal valued at about $4.4 billion, but it's purchasing only some of its spectrum licenses. Verizon agreed to buy UScellular’s 850 MHz, AWS and PCS licenses. “The transaction with Verizon is subject to the receipt of regulatory approvals and satisfaction of customary closing conditions,” said a news release. UScellular said it also has agreements with two unnamed carriers for the sale of spectrum across the C-band, 700 MHz and citizens broadband radio service bands. Buyers and terms weren’t disclosed. The company has yet to reach an agreement on 3.4 billion MHz POPs of low- and mid-band spectrum licenses. Sales are contingent upon closing of the proposed T-Mobile transaction. "We are pleased that significant value for a portion of the remaining licenses will be realized," said Laurent Therivel, UScellular CEO: “We are continuing the process to opportunistically monetize the remaining spectrum assets not included in today's announcement." The transaction isn’t a "surprise,” though “the price was higher than expected,” New Street’s Jonathan Chaplin told investors.