UScellular Selling AT&T Some 700 MHz and 3.45 GHz Licenses

in a deal valued at about $4.4 billion, but it's purchasing only some of its spectrum licenses. AT&T agreed it will buy 3.45 GHz spectrum and 700 MHz B/C-block licenses for $1.018 billion. Like an earlier deal with Verizon and two undisclosed carriers, the sale is dependent on closing the proposed T-Mobile transaction. "We are pleased with the significant value that will be realized in the various transactions recently announced," said Laurent Therivel, UScellular CEO: "This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses. As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S.” With the latest transaction, UScellular said it has deals to sell 70% of its total spectrum holdings, excluding high-band spectrum, measured on a MHz/POPs basis. UScellular retains 1.86 billion MHz/POPs of low and mid-band spectrum and 17.2 billion MHz/POPs of millimeter-wave, Therivel said, noting that the most valuable spectrum left to sell is in the C-band. “Our C-band licenses are positioned in an attractive mid-band frequency that can deliver outstanding speed and capacity.” There is “a substantial 5G ecosystem of equipment vendors and existing infrastructure that uses C-band” and “they have a lengthy build-out timeline, with first and second build-out dates of 2029 and 2033, respectively.” The deal “is in line with UScellular’s objective to monetize its remaining spectrum following the transaction with T-Mobile announced in May,” said RBC Capital Markets in a note to investors. The firm estimated that the price for the 3.45 GHz spectrum associated with the sale is 55 cents per MHz/POP, compared with the national average spectrum price of 77 cents during the 2022 auction. The C-band holdings are UScellular’s most valuable unsold band, RBC said, noting an average price of 94 cents MHz/PoP in the 2021 auction: “We view the remaining C-Band licenses as [complementary] to AT&T's and Verizon's holdings.”