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.

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed