In a strategic move to unlock value from its spectrum portfolio, United States Cellular Corporation (NYSE:USM) announced agreements to sell portions of its retained spectrum licenses for a total of $1 billion to Verizon Communications Inc. (VZ). The deal includes 663 million MHz POPs of the 850 MHz spectrum, along with AWS and PCS licenses, and will be paid in cash, subject to adjustments. In addition, US Cellular disclosed plans to offload 12 million MHz POPs across the CBRS, C-Band, and 700 MHz B/C Block bands to two other undisclosed mobile network operators, as part of its ongoing effort to streamline operations and focus on core assets.

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These transactions align with US Cellular's previously stated objectives to monetize its spectrum assets not included in the proposed $4.4 billion sale to T-Mobile, which is expected to close in mid-2025. The company's CEO, Laurent Therivel, emphasized that these sales will ensure the spectrum is utilized for the benefit of consumers while positioning US Cellular to continue capitalizing on its retained assets, which include significant low, mid-band, and mmWave holdings. With an 82% shareholder approval from Telephone and Data Systems, Inc. (NYSE:TDS), the deals now await regulatory clearance.

This announcement comes amid a broader industry trend where wireless operators like Verizon are focusing on optimizing their spectrum portfolios and core business capabilities. As US Cellular sheds non-core assets, the company is poised to leverage its remaining 20.6 billion MHz POPs of spectrum to drive future growth while retaining the flexibility to pursue additional monetization opportunities. Investors have reacted positively, with USM shares climbing nearly 10% and its biggest shareholders, Telephone and Data Systems, up nearly 18% following the news, reflecting optimism about the company's strategic direction.

This article first appeared on GuruFocus.