U.S. Cellular’s Q2 2025 Earnings Call: Unpacking Contradictions in Spectrum Transactions, 5G Strategy, and Financial Leverage

Spectrum transactions and free cash flow, 5G rollout and market strategy, leverage and financial strategy, fiber expansion targets, and pricing strategy are the key contradictions discussed in United States Cellular Corporation's latest 2025Q2 earnings call.



T-Mobile Transaction and Financial Impact:
- TDS closed the $4.3 billion sale of its UScellular wireless business and spectrum assets to T-Mobile.
- This transaction strengthened TDS's financial position, with $1.7 billion in debt assumed by T-Mobile, and reduced TDS's debt by $364 million.
- Proceeds will be used for debt repayment, dividends, and fiber program investments.

Fiber Expansion and Market Growth:
- TDS Telecom plans to deliver 150,000 new fiber service addresses in 2025, with 27,000 delivered in Q2.
- The company aims to achieve 1.8 million marketable fiber service addresses and has completed 1 million to date.
- Growth is driven by new builds in E-ACAM and expansion markets, along with increased penetration in existing fiber areas.

Array Digital Infrastructure and Tower Business:
- With 4,400 towers, Array Digital Infrastructure signed a new master license agreement with T-Mobile.
- This agreement commits T-Mobile to 2,015 colocation sites for 15 years, with a 15-year extension for 600 existing colocations.
- Growth is expected due to strong MLA terms and strategic focus on revenue and lease optimization.

Spectrum Monetization Strategy:
- Array Digital Infrastructure reached agreements to monetize 70% of its spectrum, including $2 billion from AT&T and Verizon.
- Additional proceeds are expected from spectrum sales, which will be used for dividends, fiber investments, and shareholder returns.
- The company plans to opportunistically monetize remaining spectrum, especially C-band licenses, with future sales driven by market demand.