UScellular and TDS Announce Sale of Wireless Operations and Select Spectrum Assets

United States Cellular Corporation (UScellular) and Telephone and Data Systems (TDS) announced that they have entered into a definitive agreement to sell UScellular’s wireless operations and select spectrum assets to T-Mobile for a purchase price of USD 4.4 billion, including a combination of cash and up to approximately USD 2 billion worth of debt.

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Transaction Overview

Under the terms of the agreement, T-Mobile will acquire UScellular’s wireless operations (mobile customers and stores) and around 30 percent of spectrum assets across several spectrum bands. In addition, T-Mobile will enter into a new master license agreement (MLA) for more than 2,000 towers.

The agreement follows a review process announced in August 2023 and has been recommended by UScellular and approved by the boards of directors of both UScellular and TDS, an 83 percent shareholder of UScellular.

Customer Benefits

T-Mobile’s purchase and integration of UScellular’s wireless operations, spectrum, and tower assets will provide customers with more options and a better network experience, the official release said.

Commenting on the transaction, UScellular said, “In the face of rising competition and increasing capital intensity required to keep pace with the latest technologies, and following our careful and deliberate strategic review, we are confident that continuing to deliver on our mission requires a level of scale and investment that is best achieved by integrating our wireless operations with those of T-Mobile.”