Sprint will acquire PCS spectrum and customers from U.S. Cellular as part of a deal that involves $480 million in cash and the assumption of certain liabilities. Customers in parts of Illinois, Indiana, Michigan, Missouri and Ohio including the Chicago and St. Louis markets are included in this deal. Sprint intends to use the additional spectrum it receives to supplement its coverage in these areas.
As part of the deal, Sprint will acquire 20MHz of PCS spectrum in the 1900MHz band in various Midwest markets. Sprint will also acquire 10MHz of PCS spectrum in the St. Louis market. The transaction involves about 585,000 U.S. Cellular customers. After the transaction is complete, U.S. Cellular will continue to operate in other markets outside of the areas affected by this agreement.
The transaction between Sprint and U.S. Cellular must receive regulatory approvals by the Department of Justice and the Federal Communications Commission. Until the deal has been completed, U.S. Cellular customers' accounts and service will not change. The deal is expected to close mid-2013.