logo
  Join        Login             Stock Quote

Sprint (S) Paying $480M To Buy Midwest Spectrum, Customers From U.S. Cellular (USM)

 November 07, 2012 08:07 AM
 


(By Balachander) Sprint Nextel Corp. (NYSE: S) has agreed to acquire spectrum and customers in certain Midwest markets from U.S. Cellular (NYSE: USM) for $480 million in cash.

In premarket trading on Wednesday, Sprint shares fell 1.75 percent and U.S. Cellular shares were inactive.

Overland Park, Kansas-based Sprint said the deal will significantly increase its network capacity and supplement its coverage in parts of Illinois, Indiana, Michigan, Missouri and Ohio including the Chicago and St. Louis markets.

[Related -Sprint Corporation (S): Sprinting To $10?]

Under the terms of the deal, Sprint will purchase 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.

The deal also involves roughly 585,000 U.S. Cellular customers, or around 10 percent of its total customer base.

U.S. Cellular said the sale of spectrum is designed to increase focus on markets where it has strong positions and streamline operations to increase overall efficiency and effectiveness.

"Exiting these markets enables us to play to our strengths in markets where we have higher penetration and where we can effectively sharpen our proven strategy to differentiate the U.S. Cellular customer experience from other wireless carriers," said U.S. Cellular CEO Mary Dillon.

Chicago-based U.S. Cellular employed roughly 8,400 people as of Sept. 30, 2012. At the end of the third quarter of 2012, Telephone and Data Systems Inc. owned 84 percent of U.S. Cellular.

[Related -Sprint Corporation (S): Flexing Spectrum Muscle Amid Network Evolution]

U.S Cellular also announced that it will transition its Bolingbrook Customer Care Center operations to an existing vendor partner, effective Jan. 1, 2013.

The deal is expected to be completed in mid-2013.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHow Apple Could Send This Emerging Market Into Overdrive

Don't get distracted by the alphabet soup of emerging market investing -- there are other areas to get read on...

article imageJobless Claims Fell Last Week, Underlining Bullish Trend

New filings for unemployment benefits fell 2,000 to a seasonally adjusted 291,000 for the week through read on...

article image26.25% Annual Return With Lobbying Stocks?

I found an interesting portfolio investing idea: Invest into stocks that spend a huge amount of money to read on...

article imageGlobal Economic Picture Worsens Further.

The Markit PMI Indexes for November are out for a number of countries this morning, and almost all were read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.