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U.S. Cellular Sells T-Mobile Some Spectrum

Chicago-based wireless carrier U.S. Cellular (NYSE: USM  ) said that since its sale of spectrum to Verizon last month had been so successful, it decided to sell additional spectrum and arranged with T-Mobile (NYSE: TMUS  ) to purchase its Mississippi Valley 10MHz REA AWS spectrum license for $308 million.

The wireless carrier will partition and retain a portion of the license covering its markets in Knoxville and eastern Tennessee to meet future operating needs. U.S. Cellular, which is 85% owned by Telephone & Data Systems, provides wireless products and services to customers in 25 states.

U.S. Cellular President and CEO Kenneth R. Meyers said: "Following the market divestiture that closed in May, we have been seeking opportunities to monetize other non-strategic assets. We're pleased to have achieved significant value for this spectrum license, as we continue to evaluate opportunities to create additional value for our shareholders."

The carrier expects the transaction to close by the end of 2013. It was advised on the transaction by Media Venture Partners. Following the Verizon deal, U.S. Cellular paid its shareholders a special dividend of $5.75 per share.


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Rich Duprey
TMFCop

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.

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Related Tickers

7/2/2015 4:00 PM
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United States Cell… CAPS Rating: No stars

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