United States Cellular Corp. today announced it has reached a definitive agreement to sell its Chicago, St. Louis, central Illinois and three other Midwest markets to subsidiaries of Sprint Nextel Corp. for $480 million.
The sale includes PCS spectrum and approximately 585,000 customers, or about 10 percent of U.S. Cellular’s customer base.
U.S. Cellular said the sale is designed to enable the company to focus on markets where it has strong positions and to streamline operations to increase overall efficiency and effectiveness.
A U.S. Cellular spokeswoman said the sale would not have an impact on the company’s Wisconsin operations.
“In the dynamic wireless marketplace, we have a clear strategy to accelerate profitable growth and increase return on investment over the long term, and we are taking decisive steps to achieve it,” said Mary Dillon, president and chief executive officer of U.S. Cellular.
Following the market divestiture, U.S. Cellular will continue to have more than 1,400 associates in the Chicago area at its Chicago headquarters and additional facilities in the surrounding suburbs.
Cellular will retain its direct and indirect ownership interests in approximately 560 towers and other spectrum in the transaction markets.
