UScellular to sell off spectrum assets to Verizon for $1 billion

USCellular has entered into an agreement with Verizon to sell a portion of its retained spectrum licenses for a cool $1 billion. 

UScellular will sell Verizon 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, assuming all the usual regulatory lights go green.

UScellular has also entered into agreements with two other unnamed operators for the sale of other spectrum licenses. These deals will involve the selling off 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.

‘Buyers and terms have not been disclosed,’ notes the release, as well as stipulating the transactions are ‘contingent upon the closing of the proposed sale of the UScellular wireless operations and select spectrum assets to T-Mobile.’

"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."

In May this year, T-Mobile US agreed to a $4.4 billion cash and debt deal to acquire UScellular's mobile operations and certain spectrum assets, which included access to its portfolio of towers. The deal effectively signalled UScellular’s exit from the US mobile market.

At the time UScellular said that it will retain around 70% of its spectrum assets following the T-Mobile deal and ‘will seek to opportunistically monetise these retained assets.’ And that seems to be what this latest announcement it all about.