Light Reading
Deal worth $480M gives Sprint extra customers and spectrum for LTE; U.S. Cellular gets extra money for its own 4G deployment

Sprint to Buy Midwest U.S. Cellular Markets

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
11/7/2012
50%
50%

Sprint Corp. (NYSE: S) wants to buy Chicago and five other Midwestern markets from smaller rival U.S. Cellular Corp. (NYSE: USM) for US$480 million, adding to its customer base and spectrum holdings.

The carriers said Tuesday that Sprint is planning to buy markets in Chicago, St. Louis, central Illinois and three other Midwest markets. The transaction will net Sprint approximately 585,000 customers -- or about 10 percent of U.S. Cellular's total subscriber base -- and 1900MHz PCS spectrum.

Additional PCS spectrum could be particularly important for Sprint; the operator is currently using these radio frequencies to deploy its nascent 4G Long Term Evolution (LTE) network. The operator currently has 32 of the new 4G markets deployed.

For its part, U.S. Cellular says that the deal will help the carrier achieve its aim of deploying 4G to 58 percent of its remaining 5.2 million customer base by the end of the year. "The transaction will help us finance LTE," said the operator's CEO, Mary Dillon, on a call Wednesday morning.

The company says that it has already sold 265,000 4G LTE devices, like the Samsung Corp. Galaxy S III smartphone, even before the 4G networks are up.

U.S. Cellular said in October that it will launch LTE in 30 new markets on 700MHz spectrum in partnership with King Wireless this week.

The boards of both carriers have approved the deal. It is subject to regulatory approval and should close by mid-2013.

For more



— Dan Jones, Site Editor, Light Reading Mobile

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 5:18:00 PM
re: Sprint to Buy Midwest U.S. Cellular Markets


Yeah, they said tey were getting something like 3 to 4% penetration in Chicago compared to a 13% average. Suggests that smaller towns and cities might be a more fruitful target for them.

joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
12/5/2012 | 5:18:00 PM
re: Sprint to Buy Midwest U.S. Cellular Markets


I found it interesting that U.S. Cellular said the markets it was selling were unprofitable. Makes you realize how valuable the spectrum alone is to someone like Sprint -- and tends to support the idea that an individual market can only support a relatively small number of wireless service providers.

Flash Poll
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (0) comments


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Introducing 'The New IP'
Stephen Saunders, CEO and founder, Light Reading, 9/11/2014
AT&T to Launch WiFi Calling in 2015
Sarah Reedy, Senior Editor, 9/12/2014
Glimpsing the Self-Driving Car
Dan Jones, Mobile Editor, 9/12/2014
Apple's New iPhones Have 20 LTE Bands, VoLTE
Sarah Reedy, Senior Editor, 9/9/2014
T-Mobile Accuses Huawei of Espionage
Sarah Reedy, Senior Editor, 9/9/2014
Like Us on Facebook
Twitter Feed