Company Reports

We will discontinue analyst coverage of Array Digital on or about July 7.

Array Digital Infrastructure, formerly US Cellular, is following a path we've long prescribed: carving up the wireless business among the large wireless companies in a way that maximizes value while minimizing the risk of regulators stepping in. The firm has completed the sale of its wireless operations to T-Mobile and a block of spectrum licenses to AT&T. An agreement to sell additional licenses to Verizon is likely to close in the coming months. Parent TDS has now offered to end Array’s run as a stand-alone entity, merging the firms to reduce complexity and potentially ease the path to additional asset sales.

TDS' offer to acquire the 18% of Array Digital that it doesn't already own completely overshadowed first-quarter results. Array will pay a final special dividend of $10.40 per share, and then Array shareholders will receive 0.86 TDS shares, based on the current offer.

Array Digital Infrastructure, formerly US Cellular, is following a path we've long prescribed: carving up the wireless business among the large wireless companies in a way that maximizes value while minimizing the risk of regulators stepping in. The firm has completed the sale of its wireless operations to T-Mobile and a block of spectrum licenses to AT&T. An agreement to sell additional licenses to Verizon is likely to close in the coming months. Parent TDS has now offered to end Array’s run as a stand-alone entity, merging the firms to reduce complexity and potentially ease the path to additional asset sales.

Array Digital Infrastructure, formerly US Cellular, is following a path we've long prescribed: carving up the wireless business among the large wireless companies in a way that maximizes value while minimizing the risk regulators step in. The firm has completed the sale of its wireless operations to T-Mobile and a block of spectrum licenses to AT&T. An agreement to sell additional licenses to Verizon is likely to close in the coming months, and management is pursuing the sale of its remaining spectrum holdings. We expect these sales to mark the first steps toward ending Array’s run as a stand-alone entity.

Array Digital's reported revenue increased 131% in the fourth quarter, as the wireless business shifted to discontinued operations and T-Mobile began paying rent on former US Cellular sites. Excluding a full year of T-Mobile revenue and lost sales to Dish, management expects about 6% growth in 2026.

Array Digital reported an 83% year-over-year increase in revenue, as T-Mobile began paying rent on former US Cellular sites. Excluding the T-Mobile revenue, tower rent increased 8% on solid leasing activity. The tower business reported a modest 12% EBITDA margin for the quarter.

Array Digital Infrastructure, formerly US Cellular, has completed the sale of its wireless operations to T-Mobile. Agreements to sell most of its remaining spectrum licenses to Verizon and AT&T are likely to close in the coming months. The firm has followed a path we've long prescribed: carving up the wireless business among the large wireless companies in a way that maximizes value while minimizing the risk regulators step in. We expect these sales to mark the first steps toward ending Array’s run as a stand-alone entity.

Array Digital Infrastructure, formerly US Cellular, has completed the sale of its wireless operations to T-Mobile. Agreements to sell most of its remaining spectrum licenses to Verizon and AT&T are likely to close in the coming months. The firm has followed a path we've long prescribed: carving up the wireless business among the large wireless companies in a way that maximizes value while minimizing the risk regulators step in. We expect these sales to mark the first steps toward ending Array’s run as a stand-alone entity.

Array Digital Infrastructure, formerly US Cellular, reported its final quarter as a wireless carrier, with the sale of its wireless business to T-Mobile closing on Aug. 1. The remaining tower business reported 6% revenue growth year over year, on accelerating tenant colocation additions.

The Federal Communications Commission and US Department of Justice cleared T-Mobile's acquisition of US Cellular's wireless operations without conditions. The approvals clear the way for the sale of select US Cellular spectrum licenses to AT&T and Verizon. We expect transactions to close shortly.

US Cellular is nearing completion of the sale of its wireless operations and most of its spectrum licenses to T-Mobile, Verizon, and AT&T. These agreements follow a path we've long prescribed for US Cellular: carving up its assets among the large wireless companies in a way that maximizes value while minimizing the risk regulators step in. We expect these assets sales will mark the first steps toward ending US Cellular’s run as a standalone entity.

US Cellular's wireless business posted typically weak operating results during the first quarter, losing 38,000 net postpaid phone customers. The firm is focused on closing the sale of this business to T-Mobile, and announced that it will issue a special dividend with the net proceeds.

US Cellular lost 19,000 net postpaid phone customers during the fourth quarter, continuing to show steady improvement year over year. Fourth-quarter revenue still declined 3%, as the firm's wireless customer base is 3% smaller than a year ago, and revenue per customer was largely unchanged.

US Cellular agreed to sell its wireless operations and about 30% of its spectrum licenses to T-Mobile in May 2024. The firm subsequently reached agreements to sell an additional roughly 35% of its spectrum holdings to Verizon and AT&T. These agreements follow a path we've long prescribed for US Cellular: carving up its assets among the large wireless companies in a way that maximizes value while minimizing the risk regulators step in. However, the firm has yet to define plans for the large cash pile it will ultimately be left with. This creates a risk that shareholders will fail to realize the value these transactions will unlock, which we estimate could be around $75 per share in total.

US Cellular lost 28,000 net postpaid phone customers during the third quarter, slightly better than a year ago (38,000). Revenue declined 4% year over year, with wireless service revenue down 2%. Phone sales were 13% lower as customers kept devices longer. Third-party tower revenue increased 1%.

T-Mobile's agreement to buy US Cellular's wireless business for $4.4 billion, signed in May, included only about 30% of its spectrum holdings, leaving US Cellular free to sell the remainder to others. US Cellular agreed to sell about 11% of its spectrum licenses to Verizon for $1 billion.

US Cellular’s second-quarter results were in line with our expectations and don’t alter our view of the firm’s standalone prospects. With the pending sale of the wireless business to T-Mobile, attention has shifted to the sale approval process and the tower and spectrum assets that US Cellular will retain. With little incremental information in these areas, we are maintaining our $52 fair value estimate, which balances a 75% chance of the T-Mobile deal closing against our $25 standalone US Cellular fair value estimate.

US Cellular has agreed to sell its wireless operations and 30% of its spectrum licenses to T-Mobile. Assuming the deal goes through, this will leave US Cellular with the remaining spectrum licenses, its tower business, and equity investments in multiple other wireless businesses, most notably Verizon’s Los Angeles operations. We anticipate US Cellular will soon agree to sell most, if not all, of its remaining assets, with a deal contingent on completion of the sale to T-Mobile. Without wireless operations, the spectrum licenses will do US Cellular little good for its own use, but they should have significant value for other wireless operators. We doubt US Cellular will choose to continue operating exclusively as a very small tower provider, so we expect the firm to sell that business as well. We think these moves are in the best interests of shareholders, but these transactions will require regulatory approval.

Nine months after initiating a strategic review, US Cellular finally took a substantive step by agreeing to sell its wireless operations and 30% of its spectrum licenses to T-Mobile. Notably, this leaves the firm with significant remaining assets that we expect it will look to sell. Considering the firm’s continually deteriorating business, which we believe was destined to continue due to lack of scale, we see this as a huge win for shareholders. On the merits, we think this transaction should gain regulatory approval, but considering the tougher stance the current administration has taken on mergers and antitrust matters, we can’t assume the deal will be completed. We are raising our fair value estimate to $52, which reflects a 75% probability that this transaction gets approved and that US Cellular then proceeds to sell its other nonoperating assets. We factor in a 25% chance that the firm continues to operate independently, in which case our stand-alone fair value estimate of $25 would remain.