TDS Looking Forward to Life as a Tower Company Following Sale of Spectrum
UScellular parent TDS is “excited” to start a “new chapter” in the company’s history with the sale of spectrum and other wireless assets to T-Mobile for $4.3 billion (see 2508010012), CEO Walter Carlson told analysts Monday. TDS expects the sale of other licenses to AT&T to close this year, while a deal with Verizon should close in 2026, Carlson added.
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UScellular announced last month that the company will change its name to Array Digital Infrastructure following the close of the T-Mobile deal (see 2507250012), which happened last week. UScellular CFO Doug Chambers was named interim CEO and president of Array.
“Array is uniquely and attractively positioned, and we look forward to running a tower company,” Carlson said. With some 4,400 towers, “Array has the strength and stability of the new master license agreement with T-Mobile,” he said. “With increasing demand for data and communication services in the United States, we believe we have a great opportunity to grow colocations and margins.”
TDS still holds C-band licenses, which it views as “attractive beachfront spectrum for 5G,” Carlson noted. “There's an existing infrastructure ecosystem, so carriers are easily able to put this C-band spectrum to use.”
TDS also launched a new mobile virtual network operator, TDS Mobile, available in all markets across its footprint, said TDS CFO Kristina Bothfeld. “We have been taking a very phased, methodical approach as we're trying to work out all the kinks and ensure a great customer experience.”
Overall revenues were $1.2 billion for Q2, which ended June 30, down 4% over the same quarter last year, TDS reported. Operating income was $40 million, down 2%.