UScellular Concludes Significant Wireless Operations Sale to T-Mobile

UScellular Completes Sale of Wireless Operations

On August 1, 2025, a major shift in the telecommunications landscape was announced with the completion of the sale of UScellular's wireless operations and certain spectrum assets to T-Mobile US, Inc. The transaction, involving a staggering total of $4.3 billion, consists of $2.6 billion in cash and approximately $1.7 billion in debt assumed by T-Mobile through an exchange offer made to UScellular's debtholders. This closing is set to pave the way for a new chapter for the company, now rebranded as Array Digital Infrastructure, Inc.

Transaction Details

The closing marks a significant milestone in the storied history of UScellular, proclaiming a transition that reflects the company’s evolution over the past 42 years. The sale also establishes Array as a formidable owner and operator of wireless communication infrastructure, retaining approximately 4,400 cell towers in the United States. This strategically positions the company as the fifth largest tower business in the nation, ready to engage with the increasing demand for 5G and other advanced wireless technologies.

Douglas W. Chambers, who previously served as UScellular's Executive Vice President and Chief Financial Officer, has been newly appointed as the interim President and CEO of Array. The company also anticipates changing its NYSE ticker symbol from “USM” to “AD” for its Common Stock by August 12, 2025, further solidifying its new identity.

Future Projections and Agreements

In conjunction with the acquisition, T-Mobile entered into a 15-year Master License Agreement (MLA), ensuring they become a long-term tenant of at least 2,015 additional towers owned by Array and extending the lease of approximately 600 existing towers. This arrangement is expected to create a dependable revenue stream, reinforcing T-Mobile's position as a strong anchor tenant.

Walter Carlson, President and CEO of TDS, emphasized the significance of this sale in delivering shareholder value and reflecting a robust growth trajectory for the remaining Array business. He expressed gratitude to the UScellular team for their dedication and contributions during the transition period, extending well wishes to all employees as they navigate their next steps.

Array’s retained assets include not only the tower infrastructure but also additional spectrum holdings across multiple bands. As part of its strategy post-sale, the company has already entered into agreements with major carriers, including Verizon and AT&T, to capitalize on the spectrum licenses that were not part of the deal with T-Mobile. This strategic move is pending regulatory approval and completion of customary closing conditions.

Analysis and Implications

The completion of UScellular’s sale to T-Mobile signals a broader trend in the telecommunications sector, where consolidation and specialization are becoming increasingly common. Stakeholders in the industry are keenly watching as Array prepares to monetize its retained spectrum and leverage its robust tower portfolio. As the telecommunications landscape continues to evolve with technological advancements and consumer demands, Array is now uniquely positioned to capitalize on these opportunities, potentially leading to further growth and value creation.

Array’s headquarters remains in Chicago, and as a newly formed entity, it continues to be 81% owned by Telephone and Data Systems, Inc. Founded in 1969, TDS provides a range of wireless and broadband services, further reinforcing the strategic framework for Array's future.

As the company prepares for its next earnings call on August 11, 2025, more insights into the impacts of this monumental transaction will likely emerge, shaping the path forward for Array and the greater telecommunications arena.