The End of US Cellular? It Is Looking At Its Options Now That Wireless is Dominated By T-Mobile, Verizon, & AT&T




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couple of people texting on phone

Telephone & Data Systems (TDS) said its contemplating strategies regarding the future of US Cellular, the largest regional cellphone carrier. As companies consolidate into three nationwide networks, US Cellular is in a good position to rethink avoiding the trend

US Cellular manages and connects TDS’ six million wireless, broadband, video and voice connections nationwide in 21 states. 

The question now is with the dominate of T-Mobile, Verizon, and AT&T, what will happen to US Cellular or the 4,600 employees working there? Right now, the company is looking at its options wich could include it being sold. 

“We will pursue the pathway that is in the best interest of shareholders,” Chairman of the TDS Board, Walter C.D. Carlson, said in a press release earlier today.

The company isn’t retaining customers as they gravitate to T-Mobile, Verizon, and AT&T. TDS will conduct a comprehensive review to explore all strategic options. US Cellular has an average annual revenue of $4 billion.

US Cellular leases its towers to rival networks and its own network. 

Chief Executive LT Therivel “see[s] a lot of value in that tower business.” reports The Wall Street Journal. US Cellular may lease or sell its towers to rival providers, although antitrust officials are already blocking mergers between other companies. 

Chief Executive Officer of US Cellular, Latent Therivel, said they will “remain focused on executing our plan.”

Since Telephone and Data Systems said they’re considering selling US Cellular, the carrier’s stock rose 91%, and TDS’ stock went up to 81%, reports MarketWatch. Telephone & Data Systems owns over 80% of US Cellular shares.

US Cellular and TDS are consulting with legal counsel and financial advisors to discuss a plan of action. TDS said they had not scheduled a deadline for the review. Both companies declined to comment at this time.

Check back with Cord Cutters News as we await more information, though when any new details come out is anyone’s guess.

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