Sprint has entered into a definitive agreement with U.S.
Cellular to acquire PCS spectrum and customers in parts of
Illinois, Indiana, Michigan, Missouri and Ohio including the
Chicago and St. Louis markets for $480 million in cash and the
assumption of certain liabilities.
The additional spectrum will be used to supplement Sprint's
coverage in these areas as it continues to deploy its Network
Vision upgrade and roll out 4G LTE nationally.
"This transaction will enable us to strengthen our business and
become a more robust competitor," said Dan Hesse, Sprint?s CEO.
"Acquiring this spectrum will significantly increase Sprint?s
network capacity and improve the customer experience in several
important Midwest markets including Chicago and St. Louis. We
welcome the new customers in these markets and look forward to
providing them with Sprint?s unique combination of unlimited
plans, an iconic device portfolio and unmatched customer
Under the terms of the agreement, Sprint will acquire 20 MHz of
PCS spectrum in the 1900 MHz band in various Midwest markets
including Chicago, South Bend, Ind. and Champaign, Ill. and 10
MHz of PCS spectrum in the St. Louis market. In addition, the
transaction involves approximately 585,000 U.S. Cellular
customers. U.S Cellular will continue its business operations
outside of these markets following the closing.
The transaction is subject to regulatory approvals by the
Department of Justice and the Federal Communications Commission
and is expected to close in mid-2013. In the meantime, the
accounts and service of U.S. Cellular customers in these markets
will not change.