Verizon Acquires US Cellular Spectrum Licenses for $1 Billion: Major Wireless Industry Move

Verizon Acquires US Cellular Spectrum

Verizon Communications Inc., the largest wireless carrier in the United States, is set to acquire a portion of US Cellular Corp.’s spectrum licenses for $1 billion. This move comes as US Cellular looks to streamline its portfolio.

The acquisition, along with agreements with two other mobile network operators, hinges on the successful closure of a previously announced deal with T-Mobile US Inc. In May, US Cellular agreed to sell its wireless operations and certain spectrum assets to T-Mobile for $4.4 billion, a deal that includes both cash and debt.

This announcement reflects a broader trend among US wireless companies to concentrate on their core operations. Just last month, Verizon made headlines by selling the rights to lease thousands of towers while retaining the ability to lease back the capacity.

Despite US Cellular's plans to divest, it still manages one of the largest tower businesses in the country and intends to "opportunistically monetize these retained assets," according to a recent statement.

Following the news, shares of US Cellular experienced a notable rise of 9.1% on Friday morning in New York, while Verizon’s stock remained relatively stable.

Verizon Acquires US Cellular Spectrum Licenses for $1 Billion: Major Wireless Industry Move