T-Mobile Considers Buying Spectrum, Other Assets from UScellular: Report

T-Mobile is reportedly examining purchasing spectrum and other assets from UScellular, The Wall Street Journal reported Thursday. The newspaper also mentions UScellular is in separate discussions with Verizon. Both Verizon and T-Mobile declined comment. Industry officials said while Verizon held discussions with UScellular, those talks aren’t ongoing. T-Mobile is closing in on a deal to buy part of the regional carrier for more than $2 billion, taking over some operations and spectrum licenses, the paper reported, citing unnamed sources. The boards of TDS and UScellular are exploring the future of the carrier and examining “strategic alternatives," the companies said in August (see 2308070043). T-Mobile Chief Financial Officer Peter Osvaldik said in January his company was eyeing UScellular (see 2401260071). New Street’s Jonathan Chaplin questioned whether a joint deal with Verizon and T-Mobile makes sense. The firm recently evaluated UScellular’s spectrum portfolio as worth “very conservatively” $3.2 billion, he told investors: “The strongest overlap would be with T-Mobile. Moreover, when T-Mobile set guidance, we thought they were preserving capacity to buy this asset. As such, we are not surprised to see T-Mobile reportedly in talks.” News of the talks initially sent UScellular’s stock price up almost $14 Thursday. The stock closed up $9.90 at $45.95, an increase of 9.9% for the day.