American telecommunications provider T-Mobile announced it will buy and acquire all of UScellular’s wireless operations, including its customers and stores, as well as specified spectrum assets in a deal worth US$4.4 billion.
In a statement, T-Mobile said the deal includes cash and up to US$2 billion of debt. In a separate press release, UScellular said up to US$100 million of the deal’s portion depends on certain financial and operating metrics being met between its signing and closing. The price is subject to other potential adjustments, it added.
The UScellular release stated T-Mobile will acquire 30% of UScellular’s wireless spectrum as part of the deal.
The spectrum will be used to improve coverage in rural areas in the US and offer better connectivity to customers, the companies say.
|
|
Both say UScellular will retain 70% of its wireless spectrum towers and will lease space on at least 2,100 additional towers to T-Mobile.
“The company will retain 70% of its spectrum portfolio – a trove of assets that is most likely to be negotiated in the spectrum secondary market,” commented GlobalData Americas research director Jesus Romo.
“UScellular aims to keep strategic mid-band frequencies, including licenses from the 3.45GHz and C-Band, as well as mmWave capacity that could receive interest from FWA operators, a market now projected to exceed 20 million accesses by 2028, according to GlobalData’s estimates.”
Part of the deal will allow T-Mobile to sign new long-term leases on at least 2,015 UScellular-owned towers and extend the lease on 600 other properties.
“This will ensure continued, uninterrupted service for UScellular customers following the transaction and create a long-term contracted revenue stream from a strong anchor tenant for at least 15 years after the close of the transaction,” UScellular said.
CNBC, quoting a report from The Wall Street Journal, said in earlier May T-Mobile and Verizon were in talks to “carve up” UScellular’s wireless spectrum but a deal with Verizon could take longer or won’t push through.
IDC WHITE PAPER: The Business Value of Aiven Data Cloud Solutions
According to IDC, Aiven enables your teams to perform more efficiently, reduce direct infrastructure costs, and provide improved database performance, agility and scalability.
Find out how Aiven makes teams 48% more efficient, allowing staff to focus on high-value activities that drive real business results:
340% 3-year ROI – break even in 5 months (average)
37% lower 3-year cost of operations
78% reduction in staff time for database deployments
Download the IDC White Paper now
PROMOTE YOUR WEBINAR ON ITWIRE
It’s all about Webinars.
Marketing budgets are now focused on Webinars combined with Lead Generation.
If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.
The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://itwire.com/itwire-update.html and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV https://www.youtube.com/c/iTWireTV/videos which will be used in Promotional Posts on the iTWire Home Page.
Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.
We look forward to discussing your campaign goals with you. Please click the button below.
