Sprint to buy spectrum, customers from USCC

[mellimel2212]

Us cellular is not gonna offer coverage on these markets hence why they are giving us the customers to and let's not forget sprint did just buy clear wire and their spectrum too and besides these markets uscc seems determined to stay....is is possible is another story seeing as they came from here smh lol

 

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[mellimel2212]

This is probably the easiest way to get a good roaming or affiliate type agreement going. Sprint buys their under-performing markets and a nice native roaming agreement on each side for a dirt cheap price, and everyone is happy. lol.

 

I for one would like that lol

 

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[JohnHovah]

where do you guys get such wonderful toys? Seems I'm always 5 minutes late on these deals

[bigsnake49]

Us cellular is not gonna offer coverage on these markets hence why they are giving us the customers to and let's not forget sprint did just buy clear wire and their spectrum too

 

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When did they do that? They just increased their holdings from about 48% to 50.8%, I thought.

[mellimel2212]

Which means they hold majority stake in the company hence owns it

 

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[bigsnake49]

Which means they hold majority stake in the company hence owns it

 

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It's a little more complicated than that. The partnership agreement is a little more convoluted. The company whose share they purchased seeat at the board of directors went to Clearwire instead of to Sprint. Additionally all of the directors of Clearwire, including those appointed by Sprint are supposed to be independent because of anti-trust concerns. So I don't hink that Sprint can get control of Clearwire until they buy 100% control.

[Rawvega]

Transcript from US Cellular's earnings call: http://seekingalpha.com/article/987591-united-states-cellular-s-ceo-discusses-q3-2012-results-earnings-call-transcript?part=single

 

Something related to the deal that I thought was interesting:

 

So, first at closing Sprint will pay U.S. Cellular $480 million. As Mary mentioned the sale includes most of the PCS spectrum and 585,000 customers in our Chicago, St. Louis, Central Illinois, and Indiana, Michigan, Ohio markets. The sale also contemplates the number of related agreements, the most significant of which our two transition services agreements; one to cover network operations and the other customer services. Under which the terms will provide for U.S. Cellular to continue to operate the network and service and build customers for up to two years after the closing. Sprint will pay U.S. Cellular for these services. Sprint will also reimburse U.S. Cellular for certain cost related to decommissioning the network and employee termination benefits up to a defined cap. U.S. Cellular will be responsible for store closing cost including employee and termination benefits.

[Rawvega]

As a follow up, reading the 8-K concerning this deal, the costs cap mentioned in the quoted portion of my previous post is $200M. So the absolute most that Sprint may spend from this deal is $680M.

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8900072-917-24076&type=sect&dcn=0001051512-12-000064

[omega]

As a follow up' date=' reading the 8-K concerning this deal, the costs cap mentioned in the quoted portion of my previous post is 200M. So the absolute most that Sprint may spend from this deal is 680M.

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8900072-917-24076&type=sect&dcn=0001051512-12-000064

 

Doesn't this deal look like a lot of cash for not so much?

[supert0nes]

Does US Cellular use their Rochester / La Crosse holdings? They don't have any 850 cellular spectrum there. This was the question I really wanted to ask. Do they have any other MN holdings that make sense for them to divest? We had the other forum, where we talked about divestiture, but there's a little less to divest now.

[S4GRU]

 

Doesn't this deal look like a lot of cash for not so much?

 

It's all about Chicago. Sprint has been spectrum constrained in Chicago for quite some time. And they also couldn't deploy a 2nd PCS LTE carrier there. This is the only shot at additional PCS spectrum for Sprint in Chicago, realistically. It is worth a lot to them. Also, Fort Wayne is a 10MHz only market for Sprint. They desperately need spectrum there too.

 

Robert via Nexus 7 using Forum Runner

[mellimel2212]

Lol I actually thought sprint was OK on spectrum here

 

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[gusherb]

Even after LTE started getting lit up all over Chicago 3G is still uselessly slow even with the improved back haul. They definitely do need the extra spectrum

[S4GRU]

Lol I actually thought sprint was OK on spectrum here

 

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No. Sprint is maxed out on spectrum on more sites in the Chicago market than any other major market in the country. In fact, Chicago's 3G problems are more than just backhaul. It's been backhaul and capacity. This is going to help a lot and allow for another LTE 1900 carrier when needed.

 

Robert via Nexus 7 using Forum Runner

[keelerman8042]

I keep seeing Ohio on every page I go 2 but the map doesn't show any of Ohio at all unless it's moving toward Toledo, not likely tho

[mellimel2212]

OK I'm above the influence right now lol but when u say another carrier do u mean like a boost or ting or another carrier to help build the new towers? Also u say sprint is maxxed out on spectrum here but I NEVER see those horrible speeds others post like the lowest my 3g is about 600kb-700 my highest was 2mb but it does make since seeing as Chicago is a big sprint market

 

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[JohnHovah]

OK I'm above the influence right now lol but when u say another carrier do u mean like a boost or ting or another carrier to help build the new towers? Also u say sprint is maxxed out on spectrum here but I NEVER see those horrible speeds others post like the lowest my 3g is about 600kb-700 my highest was 2mb but it does make since seeing as Chicago is a big sprint market

 

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carrier in the equipment and spectrum sense. not as in a wireless provider.

[ericdabbs]

It's all about Chicago. Sprint has been spectrum constrained in Chicago for quite some time. And they also couldn't deploy a 2nd PCS LTE carrier there. This is the only shot at additional PCS spectrum for Sprint in Chicago, realistically. It is worth a lot to them. Also, Fort Wayne is a 10MHz only market for Sprint. They desperately need spectrum there too.

 

Robert via Nexus 7 using Forum Runner

 

I agree. After looking at WiWavelength's spreadsheet for the PCS spectrum for markets, Chicago was spectrum constrained at only 20 MHz and Fort Wayne only had 10 MHz. With this deal they add much needed spectrum for both Chicago and Fort Wayne.

[dedub]

somewhat related, according to some clwr stock twits rumour mill, clwr going to announce spectrum sale today.

[WiWavelength]

My article is up on The Wall.

 

http://s4gru.com/index.php?/blog/1/entry-334-sprint-uscc-spectrum-deal-sprint-gets-20-mhz-broader-in-the-city-of-broad-shoulders/

 

AJ

[mellimel2212]

 

carrier in the equipment and spectrum sense. not as in a wireless provider.

 

That's what's I though thanks:)

 

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[WiWavelength]

Does US Cellular use their Rochester / La Crosse holdings? They don't have any 850 cellular spectrum there. This was the question I really wanted to ask.

 

Some of your info is incorrect. USCC is the Cellular 850 MHz B-side carrier in La Crosse, and USCC has no PCS 1900 MHz spectrum in the market. But it does hold the the AWS B block 20 MHz license. So, obviously, USCC wishes to retain La Crosse, especially as it has already deployed LTE there.

 

Furthermore, USCC does provide CDMA1X 1900 service in Rochester. Failing to do so would put it in violation of its PCS F block 10 MHz license terms by this point. See the coverage map excerpt:

 

 

The Rochester site spacing does not appear to be very dense, and USCC reports no retail locations in the market. So, the network likely exists for roaming mitigation, as USCC subs in northeastern Iowa and southwestern Wisconsin visit Rochester for goods and services not available in their smaller communities.

 

USCC does also hold the Lower 700 MHz A block 12 MHz license in Rochester, which is not a market encumbered by DTV channel 51 interference issues. So, USCC could even deploy LTE 700 in Rochester. But I do agree that it is another challenged market that USCC may be willing to shed in a subsequent transaction.

 

AJ

[supert0nes]

Thanks a bunch for this information! This is pretty much exactly what I was trying to figure out. Rochester and Barat/King Street wireless holdings had me stumped. Like how do they even make money off this spectrum currently? I can't believe there are that many Verizon's out there that will spend many millions/billions on spectrum and just sit on it!

[bkrodgers]

What I'm really hoping happens is that as soon as possible -- ideally even before the deal is closed, but at the very least shortly after -- Sprint adds the impacted USCC network sites to the native list in the PRL. Since USCC will essentially be continuing to operate their current network on Sprint's behalf after the sale is closed until Sprint builds out on the new frequency, it would seem to make sense. Merge the USCC network in STL and Chicago into the native list -- no 300MB limit, no need to force roam or use an "unauthorized" corporate PRL to get 3G roaming. I've used said PRL to roam on USCC's 3G network at times in STL, and their network fills in a lot of the spots where Sprint is lacking in signal strength and/or data capacity. Since Sprint would own the spectrum at that point and would be paying USCC to operate sites for a transitional period, I don't see why they couldn't or wouldn't want to use the PRL to merge the networks right away. It'd help customers on both sides, right?

[S4GRU]

What I'm really hoping happens is that as soon as possible -- ideally even before the deal is closed' date=' but at the very least shortly after -- Sprint adds the impacted USCC network sites to the native list in the PRL. Since USCC will essentially be continuing to operate their current network on Sprint's behalf after the sale is closed until Sprint builds out on the new frequency, it would seem to make sense. Merge the USCC network in STL and Chicago into the native list -- no 300MB limit, no need to force roam or use an "unauthorized" corporate PRL to get 3G roaming. I've used said PRL to roam on USCC's 3G network at times in STL, and their network fills in a lot of the spots where Sprint is lacking in signal strength and/or data capacity. Since Sprint would own the spectrum at that point and would be paying USCC to operate sites for a transitional period, I don't see why they couldn't or wouldn't want to use the PRL to merge the networks right away. It'd help customers on both sides, right?[/quote']

 

I think Sprint is paying for metered usage on USCC's network, not just a flat fee. So I'm not optimistic that this would happen. And then there would be loss of service when they do finally shut down USCC network. Which would then tick off Sprint customers too after getting used to USCC coverage.

 

USCC customers in these areas will no longer be able to get USCC network devices after the deal closes. Only Sprint devices that run on the Sprint network will be available. I believe Sprint will aggressively try to get USCC customers to upgrade to Sprint devices after closing, but allow people who want to keep their USCC devices can stay on the old network for up to two years.

 

Every month there will be less and less USCC network customers. And Sprint's network will be equal/superior in performance (not coverage) in most areas at deal close and will be offering LTE also. LTE will be a big draw for USCC smartphone customers. As soon as most of the USCC customers move to Sprint, they will shut down the USCC network entirely.

 

This will work well, as long as Sprint doesn't force people to move. But not allowing them new USCC devices is fair after closing. What Sprint should do as a part of this plan is to expand their native coverage in a lot of the areas where USCC has superior coverage during Network Vision deployments. Probably need only 50-70 additional sites to match coverage.

 

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