Reports are coming in this morning that U.S. Cellular has sold its existing customer base to Sprint Nextel Corp for 480 Million.
The sale includes PCS Spectrum and about 500,000 customers. Roughly 10% of all U.S. Cellular's customer base. If the reports are accurate, that would help explain many decisions U.S. Cellular has made up to this point, such as starting to sell through Walmart stores.
U.S. Cellular is stating that they will continue to have associates in Chicago and are committed to Chicago and their relationship to the Chicago Whitesox. How? We do not know.
The deal is not expected to go though until summer of 2013 and of course, is subject to regulatory approval. You can consider this deal done though, we don't see how this wont be approved.
We will report more as we get more updates, but the question remains simple. How do you feel about it? will you be staying on board?
It's hard to argue with some positive aspects of this deal. Better phone selection? 4G in Chicago?
What about the downside?
This has come as a shock to everyone at TUSCC. What does this mean for the remaining U.S. Cellular Markets? Is there a merger on the horizon? Will U.S. Cellular be carved out and taken over by other larger wireless carriers?
There's just to much uncertainty in the wireless world today, and it seems like unless you are ATT or Verizon, troubling times are ahead.