T-Mobile bought US Cellular for $4.4 billion.
AT&T will acquire part of the spectrum assets that T-Mobile will not receive in a $1.018 billion agreement when T-Mobile’s acquisition of US Cellular’s assets, which was announced earlier this year, closes.
According to US Cellular, AT&T will pay it for 331 million MHz-Pops of 700 MHz B/C block licenses and 1,250 million MHz-Pops of 3.45 GHz spectrum, which AT&T needs to expand its 5G network more quickly.
T-Mobile is now navigating regulatory scrutiny about its $4.4 billion acquisition of US Cellular’s retail locations, clientele, and cellular network. However, the carrier is now selling its spectrum assets to the highest bidder, keeping over 70% of them.
The remaining assets are some mmWave holdings and the most sought-after mid-band frequencies at the highly valued C-band spectrum that both Verizon and AT&T rely on for the expansion of their 5G networks. It has already sold some to Verizon, selling 55% of its holdings to date, and is still selling with the AT&T deal.
The substantial value that will be realized in the numerous previously announced transactions makes us happy. In addition to T-Mobile, this arrangement expands the number of mobile network operators whose customers would profit from the sale of our spectrum licenses. We have faith that AT&T can use it effectively in communities across the United States, just like the other mobile network operators. Additionally, in the interim, UScellular subscribers will continue to receive continuous service thanks to the conditions of the agreement.
The transaction with AT&T will only proceed if T-Mobile completes its acquisition and US Cellular is able to purchase some of the acquired spectrum licenses from a third-party owner. TDS, the largest shareholder in US Cellular, has already approved the sale.
In the 850 MHz band, Advanced Wireless Services in the 695–2200 MHz range, and Personal Communications Services (PCS) bands in the 1850–1995 MHz spectrum, Verizon has already purchased spectrum rights for $1 billion.
Since this spectrum overlaps with bands owned by its now-parent company T-Mobile, US Cellular won’t need it. Instead, it may make a nice living by selling licenses to other carriers who are in dire need of additional licenses in order to catch up to T-Mobile’s 5G network speeds and coverage.