For information on today's announcement, visit uscellularinfo.com.
As part of this transaction, the parties will enter into a number of related agreements, including Transition Services Agreements for network operations and billing and customer service. U.S. Cellular will retain its direct and indirect ownership interests in approximately 560 towers and other spectrum in the Transaction Markets.
For the nine months ended Sept. 30, 2012, the Transaction Markets generated service revenues of approximately $340 million (11 percent of reported consolidated service revenues) and, after all direct and indirect costs, incurred an operating loss.
The transaction is subject to Federal Communications Commission approval, compliance with the Hart-Scott-Rodino Act and other conditions. Subject to the satisfaction or (if permitted) waiver of all conditions, the transaction is expected to close by mid-2013.In connection with the Bolingbrook Customer Care Center transaction, the majority of the company's associates will become employees of the vendor partner, which will continue to provide services to U.S. Cellular through a transition period. Through the Bolingbrook and other Customer Care Center operations, the company will continue to deliver award-winning customer service. After transition and exit costs, the transaction is expected to reduce facilities expenses by more than $3 million annually beginning in 2014. Upon completion of the transaction, U.S. Cellular will continue to provide its customers with a high-speed nationwide network that has the highest call quality of any national carrier. U.S. Cellular, in partnership with King Street Wireless in certain markets, will offer 4G LTE service to 58 percent of its customers by the end of the year. For more information about the 4G LTE experience, visit uscellular.com/4G. Falkenberg Capital Corporation of Denver, Colo. represented U.S. Cellular in the transaction. Conference call informationU.S. Cellular will hold a conference call to discuss this transaction along with third quarter 2012 financial results on Nov. 7, 2012 at 7:30 a.m. CST.
- Access the live call on the Investor Relations page of uscellular.com or at http://www.videonewswire.com/event.asp?id=90531.
- Access the call by phone at 877-407-8029 (US/ Canada), no pass code required.
- Toll-Free Dial-In Number: 877-443-9194
- Passcode: 68605901
- The operator assisted International Dial-in Number is 720-398-0062.
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