US Cellular Announces Two Spectrum Deals

US Cellular provides wireless service to approximately 5.9 million customers and the company recently announced it would be launching 4G LTE in a number of markets. In order to continue offering competitive voice and data services, US Cellular needs additional spectrum, and to that end recently announced two pending spectrum-acquisition deals working their way through the FCC approval process.

In the first, USCOC Nebraska/Kansas, LLC (USCOC-NK), a wholly-owned subsidiary of US Cellular, has reached an agreement to acquire two Lower 700 MHz band C block licenses from USA Communications (USA-Comm). The licenses cover CMA 538 - Nebraska RSA 6 and CMA 540 - Nebraska RSA 8 and were initially granted to USA Comm’s predecessor in interest, Mobius Communications, following its winning bids in the FCC’s Auction No. 44. Modius’ gross bid for CMA 538 was $31,000, and its bid for CMA 540 was $119,000. US Cellular already holds various amounts of spectrum ranging from 25 MHz to 37 MHz in markets overlapping the areas covered by the licenses being acquired. The terms of the deal weren’t disclosed.

In the second wireless spectrum acquisition, US Cellular subsidiary USCOC of Greater North Carolina, LLC (USCOC-GNC) has agreed to acquire three Lower 700 MHz band A and B block licenses from Cavalier Wireless, LLC (Cavalier). These licenses cover BEA 042 - Asheville, NC and BEA 021 – Greenville, NC and were granted to Cavalier on June 26, 2008 following its winning license bids in FCC Auction No. 73. Cavalier’s winning gross bids were approximately $1.1 million for BEA 042, $1.2 million for BEA 021, and $667,000 for CMA 166. With the exception of CMA 166, US Cellular already provides wireless services on cellular frequencies in the relevant markets. The terms of this transaction weren’t disclosed.