United States Cellular Corporation (USM): Business Model Canvas [Apr-2026 Updated]

You're looking at United States Cellular Corporation now, and honestly, the old wireless playbook is gone. After that strategic sale of their wireless business to T-Mobile in mid-2025, the company isn't just shrinking; it's fundamentally pivoting its entire business model to focus on digital infrastructure and fiber expansion, armed with the $4.3 billion cash proceeds from that deal. This isn't a minor tweak; it's a complete overhaul where tower leasing and high-speed rural broadband become the main game, aiming for $100 million in annual savings by 2028. If you want to see exactly how this new infrastructure play is structured across all nine building blocks-from key partnerships with T-Mobile to their heavy CapEx on fiber-dive into the canvas below.

United States Cellular Corporation (USM) - Canvas Business Model: Key Partnerships

You're looking at the core relationships United States Cellular Corporation (USM) relies on as it pivots its business model, especially following the major divestitures announced in 2024 and approved in 2025. These partnerships are critical for both the transition and the remaining infrastructure focus.

T-Mobile US, Inc. for the Master Lease Agreement (MLA) on towers

The agreement with T-Mobile US, Inc. for the sale of wireless operations, which the FCC approved on July 11, 2025, includes a significant tower component. This is a long-term revenue stream for the infrastructure United States Cellular Corporation (USM) retains. The deal for the wireless operations was valued at approximately $4.4 billion, though executives indicated the final amount would be closer to $4.3 billion after accounting for performance benchmarks not being met.

The Master Lease Agreement (MLA) is central to the post-closing structure. T-Mobile US, Inc. is set to enter a new long-term MLA on a minimum of 2,015 incremental towers owned by United States Cellular Corporation (USM).

This partnership also involves extending existing arrangements. T-Mobile US, Inc. will extend the lease term for approximately 600 towers where it was already a tenant. This arrangement is designed to create a long-term contracted revenue stream for United States Cellular Corporation (USM) from a strong anchor tenant for at least 15 years after the transaction closes.

AT&T Inc. and Verizon Communications Inc. for pending spectrum sales

Spectrum monetization is a key part of the strategy, with sales to AT&T Inc. and Verizon Communications Inc. following the primary T-Mobile US, Inc. deal. The combined spectrum sales, alongside the T-Mobile transaction, were projected to boost United States Cellular Corporation (USM)'s cash by $3.4 billion and reduce debt by $2 billion.

The agreement with AT&T Inc. was for a total consideration of $1.018 billion. This included the sale of 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses. Separately, United States Cellular Corporation (USM) had an agreement with Verizon Communications Inc. to sell spectrum for $1 billion.

Here's a breakdown of the announced spectrum monetization deals:

Partner	Transaction Value (Approximate)	Spectrum Assets Mentioned
T-Mobile US, Inc.	$4.3 billion (Wireless Ops & Spectrum)	Approximately 30% of total spectrum holdings (excluding mmWave)
AT&T Inc.	$1.018 billion	1,250 million MHz-Pops (3.45 GHz) and 331 million MHz-Pops (700 MHz B/C block)
Verizon Communications Inc.	$1 billion	12 million MHz of spectrum licenses

After these proposed sales, United States Cellular Corporation (USM) is expected to retain 1.86 billion MHz-Pops of low and mid-band spectrum, with the substantial majority of retained value in the C-band spectrum.

Telephone and Data Systems (TDS) as the majority owner and fiber partner

Telephone and Data Systems, Inc. (TDS) remains the majority owner, holding approximately 83 percent of United States Cellular Corporation (USM) as of the end of the first quarter of 2025. TDS is using proceeds from the wireless sale to support its own strategic focus on fiber infrastructure via TDS Telecom.

TDS Telecom's fiber build-out program is a key area of partnership focus, with capital expenditures for 2025 projected to be between $375M and $425M, driven primarily by fiber expansion.

Key fiber deployment metrics for TDS Telecom:

• Fiber service addresses delivered in 2025 target: 150,000
• Fiber service addresses delivered in 2024: 129,000
• Long-term marketable fiber service addresses goal: 1.8 million
• Increase from prior long-term goal: 50% increase from prior goal
• Annual support from E-ACAM program: Approximately $90 million per year for 15 years

So, the relationship with Telephone and Data Systems (TDS) is shifting from wireless support to funding and driving the fixed broadband build-out.

Technology vendors for 5G network equipment and fiber deployment

United States Cellular Corporation (USM) relies on specific technology vendors to deploy and enhance its remaining network capabilities, particularly its 5G rollout. The company is focused on leveraging its retained spectrum and infrastructure.

Key technology vendor relationships for the network infrastructure include:

• Ericsson and Nokia: Selected equipment providers for the C-band spectrum deployment.
• Qualcomm and Inseego Ericsson: Partners tapped for the mmWave internet service.
• Cradlepoint, part of Ericsson: Vendor whose NetCloud Private Networks solution United States Cellular Corporation (USM) added to expand its private cellular offerings.

MxD for private cellular networking in manufacturing

United States Cellular Corporation (USM) joined MxD (Manufacturing x Digital) to lead the focus on introducing private networking technologies to U.S. manufacturing. This partnership leverages United States Cellular Corporation (USM)'s private 5G network solution to accelerate digital manufacturing initiatives showcased at MxD's 22,000-square-foot future factory floor in downtown Chicago.

The collaboration is designed to enhance Industry 4.0 communication technologies, blending private cellular tech with existing Wi-Fi systems. Furthermore, this relationship will incorporate support for projected funding by the U.S. Department of Defense that has commercial use applications.

The intended use cases for this partnership focus on:

• Industry 4.0 manufacturing and distribution.
• Warehousing and the Internet of Things (IoT).
• Connecting facilities with sensors, machine learning, and autonomous robotics.

Finance: draft 13-week cash view by Friday.

United States Cellular Corporation (USM) - Canvas Business Model: Key Activities

You're looking at the core actions Array Digital Infrastructure, formerly United States Cellular Corporation, is taking as it completes its pivot from a wireless carrier to a tower and infrastructure company. The focus is heavily on monetization and managing the remaining assets from the divestiture.

Tower co-location and leasing management (Array Digital Infrastructure)

The tower business is now the core, supported by a new Master License Agreement (MLA) with T-Mobile. This activity centers on maximizing the revenue from the existing asset base.

• Array Digital Infrastructure operates approximately 4,400 towers as of Q2 2025.
• Third-party tower revenues showed strong growth, increasing 12% year-over-year in Q2 2025.
• The number of colocations (tenants leasing space on company-owned towers) reached 2,527 in Q2 2025.
• Tower tenancy improved to 1.57 tenants per tower before the T-Mobile transaction closed on August 1, 2025.
• Post-close, the reported tenancy rate is approximately 1.0, excluding T-Mobile interim power sites.
• Third-party tower segment operating income grew 11% year-over-year in Q2 2025, reaching $21 million.

Accelerating fiber network build-out and deployment

While the primary focus shifted post-wireless sale, the fiber program, largely associated with TDS Telecom, remains a key activity area, funded by transaction proceeds. This is about building out the next-generation network backbone.

• Prior to the sale, the fiber program achieved a 30% footprint increase over three years, with new market entries in areas like Wisconsin and the Pacific Northwest.
• The company performed cost optimizations in Q1 2025, which included a decrease in capital expenditures.
• Nationally, as of early 2025, U.S. homes passed with fiber reached 88.1 million.

Executing the remaining spectrum sales to AT&T and Verizon

Monetizing the remaining non-T-Mobile spectrum licenses is a critical, near-term cash-generating activity. These deals are subject to regulatory sign-off.

Transaction Partner	Expected Closing Timeline (as of late 2025)	Gross Proceeds (Announced/Expected)
AT&T Inc.	Expected to close in 2025	$1.018 billion
Verizon Communications, Inc.	Expected to close in 2H 2025 or Q3 2026	Part of the $2 billion total expected from AT&T and Verizon

The AT&T deal, announced for $1.018 billion, received FCC approval in December 2025. Overall, agreements are in place to monetize 70% of Array's total spectrum holdings (excluding mmWave), with an anticipated total of $2 billion in gross proceeds from the pending AT&T and Verizon sales. You should note the estimated cash taxes on the AT&T transaction are approximately $125 million.

Operational efficiency and cost optimization to achieve $100 million in annual savings by 2028

Even during the transition, the focus remains on trimming costs from the legacy structure to boost margins for the infrastructure business. The goal is clear: achieve $100 million in annual cost savings by year-end 2028.

• In Q1 2025, cost optimizations led to flat operating expenses year-over-year.
• Capital expenditures were cut sharply in Q1 2025, reducing to $53 million, a 60% reduction from the prior year's $131 million.
• The planned redemption of debt using transaction proceeds is expected to save approximately $80 million annually in interest expense.

Managing the transition and wind-down of divested wireless operations

This involves the final steps of the major strategic shift, including asset transfer, rebranding, and returning capital to shareholders. This is defintely the most immediate, high-impact activity.

• The sale of wireless operations and select spectrum to T-Mobile US, Inc. closed on August 1, 2025, for total consideration of $4.3 billion (including $2.6 billion in cash proceeds and $1.7 billion in assumed debt).
• The company rebranded to Array Digital Infrastructure, with a ticker symbol change from USM to 'AD' expected to commence on August 12, 2025.
• The board declared a special dividend of $23.00 per share, payable on August 19, 2025, resulting in a pro-rata payout of $1.63 billion to Telephone and Data Systems (TDS).
• Prior to the sale close, Q1 2025 saw net retail connection losses of 42,000 postpaid and 2,000 prepaid.

Finance: draft 13-week cash view incorporating the $4.3 billion T-Mobile closing proceeds by Friday.

United States Cellular Corporation (USM) - Canvas Business Model: Key Resources

You're looking at the core assets United States Cellular Corporation (now operating as Array Digital Infrastructure Inc. for its retained assets) holds as of late 2025, following major transactions. These are the tangible and financial anchors for the remaining business.

Extensive portfolio of cellular towers and real estate assets (Array)

The tower portfolio forms a substantial part of the retained asset base. As of December 31, 2024, United States Cellular Corporation owned 4,409 towers, which included 2,444 third-party colocations. Array Digital Infrastructure Inc., the entity retaining these assets post-wireless sale, secured a Master License Agreement with T-Mobile US, Inc. for a minimum of 2,015 incremental towers, plus an extension for approximately 600 existing sites, both for a 15-year term post-transaction close on August 5, 2025.

The revenue stream from these assets showed growth:

• Third-party tower rental revenues increased 6% year-over-year in the first quarter of 2025.

Remaining wireless spectrum licenses for future monetization

United States Cellular Corporation retained significant spectrum not sold to T-Mobile, with plans for opportunistic monetization. Through definitive agreements with Verizon Communications Inc. and two other mobile network operators, in addition to the T-Mobile transaction, the company reached agreements to monetize approximately 70% of its total spectrum holdings (excluding mmWave), measured on a MHz-Pops basis.

Key spectrum sale considerations include:

Buyer/Transaction	Consideration Amount	Spectrum Type/Details
Verizon Communications Inc.	$1.0 billion	Portion of Cellular (850 MHz), AWS, and PCS licenses
AT&T Inc.	$1.018 billion	Portion of 3.45 GHz and 700 MHz B/C block licenses
Total Monetized (Excluding T-Mobile)	Approximately $2.02 billion	From Verizon, AT&T, and two other MNOs

Following these announced sales, the retained spectrum portfolio consists of 1.86 billion MHz-Pops of low and mid-band spectrum and 17.2 billion MHz-Pops of mmWave spectrum, with the substantial majority of retained value in the C-band licenses.

Fiber optic network infrastructure and capacity

The infrastructure supports both the retained wireless operations and the fixed wireless/internet business. United States Cellular Corporation expects to cover more than 3 million households with 5G mid-band in 2025, supporting its fixed wireless offering.

Customer metrics related to the network capacity as of early 2025 include:

• Eclipsed 150,000 Home and Business Internet customers as of February 2025.
• Nearly 40% of these internet customers are currently using 5G mid-band speeds.
• The company provided wireless products and services to approximately 4.4 million retail connections in 21 states as of the first quarter of 2025.

Cash proceeds from the $4.3 billion T-Mobile transaction

The sale of substantially all wireless operations to T-Mobile US, Inc. had an aggregate purchase price of approximately $4.3 billion after adjustments. The financing for this transaction included $2.6 billion paid in cash, with approximately $1.7 billion in debt assumed through an exchange offer. The company estimated the net cash available for distribution to shareholders via a special dividend would range between $1.950 billion and $2.075 billion. United States Cellular Corporation repurchased 328,835 Common Shares for $21 million during the first quarter of 2025.

Skilled engineering and construction crews for fiber expansion

The company is focused on ongoing 5G mid-band network deployment, providing capacity and enhanced speed for mobility and fixed wireless customers. This deployment requires specialized teams for site upgrades and fiber integration to support the expected coverage of over 3 million households with 5G mid-band in 2025.

United States Cellular Corporation (USM) - Canvas Business Model: Value Propositions

You're looking at the core value United States Cellular Corporation (USM), now transitioning to Array Digital Infrastructure, Inc., is delivering to its various customer segments as of late 2025. This isn't just about selling mobile service anymore; it's about monetizing infrastructure and focused connectivity solutions.

Reliable, strategically located tower infrastructure for major carriers

The value proposition here centers on the physical assets retained post-wireless operations sale. The post-closing business, Array Digital Infrastructure, will oversee approximately 4,400 towers. This asset base is a key component of the overall infrastructure value being offered to the market, which itself is substantial.

Here are some industry context numbers for tower infrastructure as of 2025:

Metric	Value (2025)	Source Year/Period
US Wireless Tower Construction Industry Revenue Estimate	$14.1 billion	2025
US Telecom Towers Market Size Estimate	$7.33 billion	2025
US Cellular Tower Additions	11 sites	2024

High-speed fiber broadband in underserved suburban and rural markets

For the remaining TDS Telecom business, the value proposition is heavily weighted toward fiber expansion, targeting areas where market forces alone haven't driven sufficient buildout. This is a capital-intensive commitment, with over 80% of full-year capital expenditures focused on fiber programs.

The fiber build progress as of mid-2025 shows tangible results:

• Current fiber footprint: 968,000 addresses as of Q2 2025.
• Fiber service address coverage: 53% of addresses served as of Q2 2025.
• New fiber service addresses delivered in Q2 2025: 27,000.
• Fiber net additions in Q2 2025: 10,300.
• Fiber customer speed adoption: 83% used speeds of 100 Mbps or higher at the end of Q2 2025.
• TDS Telecom fiber market subscriber additions in Q1 2025: 8,300.

Fixed Wireless Access (FWA) as a home internet solution

Fixed Wireless Access continues to be a key offering, particularly for rural areas, leveraging the existing wireless network. The momentum in this segment is clear, even as the company refines its overall strategy.

The FWA customer base showed strong growth early in 2025:

• FWA customers added in Q1 2025: 124,000.
• Year-over-year FWA customer growth in Q1 2025: 42%.
• Previous FWA customer base milestone: Surpassed 100,000 Home Internet customers.
• Previous household coverage expectation: Expected to cover 3 million households by the end of 2024.

Capital return to shareholders via special dividends from asset sales

This is a direct, significant financial return realized from the divestiture of the wireless operations to T-Mobile US, which closed on August 1, 2025. The value delivered is concrete and immediate for shareholders.

The financial mechanics of the capital return are precise:

Metric	Amount	Context
Declared Special Dividend Per Share	$23.00 per share	Payable August 19, 2025
Expected Special Dividend Range	$22.50 - $23.75 per share	Pre-closing expectation
Expected Aggregate Special Dividend Range	$1.950 billion - $2.075 billion	Total expected payout
Pro-rata Payout to TDS from Dividend	$1.63 billion	Based on $23 per share dividend
Anticipated Gross Proceeds from Pending Spectrum Sales	$2 billion	From AT&T and Verizon transactions closing in 2025/2026

Secure private cellular networks for business and government

For enterprise and government clients, the value is in dedicated, secure, low-latency connectivity, often leveraging unlicensed CBRS spectrum. This is a focus area for the post-closing entity, building on existing partnerships.

Key details on the private network value proposition:

• Initial focus verticals include: utilities, manufacturing, logistics and warehouses.
• Partnerships include: Ericsson for Private 5G solutions and Betacom for hybrid 5G networks.
• Example Lab Network Specs: 4 radio dots covering 3,000 square feet.
• Example Lab Capacity: Supports up to 1,000 devices simultaneously.

United States Cellular Corporation (USM) - Canvas Business Model: Customer Relationships

You're looking at the relationship strategy for United States Cellular Corporation (USM) as it navigates the final stages before its wireless operations transition to T-Mobile, which is expected around December 2, 2025. The customer relationships here split sharply between the high-touch, long-term needs of its tower infrastructure partners and the transactional, growth-focused approach for its residential broadband users.

Dedicated account management for major carrier tower tenants (B2B)

For your tower business, relationships are built on long-term, high-value contracts with major carriers. This segment is a highlight, even as the mobile business faces subscriber losses. In the first quarter of 2025, total tower revenues grew $\mathbf{5\%}$ year-over-year to $\mathbf{\$61 \text{ million}}$, with third-party tower rental revenues specifically up $\mathbf{6\%}$ YoY. This growth comes from annual lease escalators, new colocation activity, and amendments. The relationship structure is heavily weighted toward the largest tenants.

Here's the quick math on who pays the rent on the towers United States Cellular Corporation owns:

Tenant	Tower Revenue Share (Q1 2025)	Tower Count Occupied (End of 2024)
T-Mobile	34%	Approx. $\mathbf{600}$ (existing) + min. $\mathbf{2,015}$ (new long-term)
Verizon	27%	Unknown specific number
AT&T	25%	Unknown specific number
Other Wireless Providers	14%	Contribute to $\mathbf{2,469}$ total colocations (Q1 2025)

The strategy here is maximizing tenancy on the $\mathbf{4,413}$ towers owned as of Q1 2025, aiming to increase the tower tenancy ratio above the Q1 2025 figure of $\mathbf{1.56}$. The geographical uniqueness of these towers, often taller to cover wide rural areas, is seen as a key driver for future co-locators.

Transactional and self-service for fiber and FWA residential customers

For the Fixed Wireless Access (FWA) and any remaining fiber residential customers, the relationship leans heavily toward a transactional, self-service model, supported by clear, easy-to-access setup help. This is where United States Cellular Corporation has seen notable growth momentum, even as its core mobile business faced subscriber declines. The FWA customer base growth is strong; they surpassed $\mathbf{150,000}$ Home and Business Internet customers as of February 2025, representing a growth of more than $\mathbf{50\%}$ in the preceding $\mathbf{18}$ months.

The service interaction points are designed for efficiency:

• Performance Setup offering includes self-installation via a router and receiver.
• Free Internet Setup Coach from Asurion experts available via phone for placement and device connection help.
• The focus is on delivering fast, reliable internet without the complexity of traditional wired setups.

The overall retail base, which includes these FWA customers, stood at $\mathbf{4.4 \text{ million}}$ postpaid and prepaid subscribers at the end of 2024. Postpaid Average Revenue Per User (ARPU) was $\mathbf{\$51.96}$ in Q1 2024.

Personalized customer service focus in rural markets

United States Cellular Corporation has historically positioned itself as a regional carrier serving rural and underserved markets, which implies a higher degree of personalized service compared to national competitors. While the company's overall American Customer Satisfaction Index (ACSI) score stumbled $\mathbf{3\%}$ to $\mathbf{72}$ in the 2025 study, the FWA growth suggests positive feedback in those specific areas. The commitment to these areas is underscored by the fact that their towers are generally taller, built to cover wider geographies. The company's strategy is to connect underserved America, where reliable, high-speed connectivity is essential.

Long-term contracts for tower and spectrum leasing

The relationship with the tower property owners is governed by the terms of the lease, which are inherently long-term to secure infrastructure placement. While tower developers often push for $\mathbf{40}-\mathbf{80}$-year leases, contracts written on carrier paper, like those from United States Cellular Corporation, traditionally average $\mathbf{25}-\mathbf{30}$ years. For option periods, standard templates often request an $\mathbf{18}$-month period with an additional $\mathbf{6}$-month extension. However, the customer relationship for the wireless subscribers themselves is shifting dramatically due to the pending sale. Starting December 2, 2025, all United States Cellular Corporation customers will transition to T-Mobile's Terms & Conditions, which explicitly feature $\mathbf{no}$ early termination fees and $\mathbf{no}$ annual service contracts. This means the long-term contractual lock-in for the mobile customer base is effectively ending, moving toward a relationship based purely on perceived value and service quality.

United States Cellular Corporation (USM) - Canvas Business Model: Channels

You're looking at the distribution and access points for United States Cellular Corporation (USM) as of late 2025, a period defined by the strategic wind-down of its wireless operations and a pivot toward infrastructure and fiber services under the TDS Telecom umbrella.

Direct sales teams for tower co-location and fiber enterprise solutions are a primary channel for monetizing the physical network assets. These teams target business customers for private cellular networks and tower leasing opportunities. The success of this channel is reflected in the Q1 2025 results, where third-party tower rental revenues increased by 6%. The company is actively positioning its network capabilities for enterprise use cases, including private cellular networks, with partnerships like the one with Cradlepoint for NetCloud Private Networks.

For the remaining or evolving fixed-line and fixed wireless access (FWA) services, online portals and customer service centers serve as the main interface for subscribers. The fiber program, a key focus for the remaining entity, shows specific delivery metrics. As of Q2 2025, the current fiber footprint reached 968,000 marketable service addresses, working toward a long-term target of 1.8 million. In the first quarter of 2025 alone, 14,000 new fiber service addresses were delivered. Residential broadband net additions for that quarter were 2,800.

Partnerships with MVNOs like Cape for network access represent a crucial channel for leveraging the existing network footprint without direct consumer acquisition costs for those specific segments. Cape was established as the first consumer mobile virtual network operator (MVNO) to gain access to United States Cellular Corporation's differentiated networks. Furthermore, the company has established other specialized partnerships, such as one with Soracom to offer IoT data plans. To be fair, the overall wireless customer base was significantly impacted by the pending sale to T-Mobile, which was expected to close in mid-2025.

The build-out of the fiber network relies heavily on internal construction crews for fiber service address delivery. Investment in staffing these internal teams contributed to noted pressures on Adjusted EBITDA in Q1 2025, as cash expenses rose in alignment with transformation efforts. The wireline segment's 2025 priority included a target of delivering 150,000 new fiber service addresses, with over 80% of capital expenditures dedicated to these fiber programs.

Here's a quick look at some of the key channel-related statistics as of mid-2025:

Metric	Value/Amount	Period/Context
Third-Party Tower Revenue Growth	6% increase	Q1 2025
Current Marketable Fiber Addresses	968,000	Q2 2025
New Fiber Addresses Delivered	14,000	Q1 2025
Residential Broadband Net Additions	2,800	Q1 2025
Fixed Wireless Customer Growth	27%	Full Year 2024
Estimated T-Mobile Transaction Proceeds	Approximately $4.3 billion	Pre-close estimate

The operational focus for service delivery channels is also highlighted by the company's commitment to its network quality, which was recognized by Ookla® Speedtest Intelligence® data for 1H 2025.

The various access and delivery methods utilized include:

• Direct sales engagement for enterprise and tower co-location contracts.
• Online self-service and dedicated customer support for fiber/FWA.
• Wholesale agreements with MVNOs, starting with Cape for consumer access.
• In-house construction teams driving fiber service addressability.
• Partnerships for specialized services, like IoT with Soracom.

The Q1 2025 operating revenues for the company were $891 million, with service revenues at $741 million. The TTM revenue as of late 2025 was reported at $3.70 Billion USD.

United States Cellular Corporation (USM) - Canvas Business Model: Customer Segments

You're looking at the customer base for United States Cellular Corporation (USM) as of mid-2025, right in the middle of its strategic transition toward closing the T-Mobile deal. The customer segments reflect both the legacy wireless business and the growing tower and fixed wireless assets.

Major US wireless carriers (T-Mobile, AT&T, Verizon) as tower tenants

This segment is critical because it represents a significant, high-margin revenue stream, especially as the company focuses on monetizing its physical infrastructure ahead of the wireless sale. As of the first quarter of 2025 (1Q25), United States Cellular Corporation owned 4,413 towers across its operating footprint. The tower business is a key value driver, with total tower revenues reaching $61 million in 1Q25, a 5% year-over-year growth, driven by new colocation activity and lease escalators. The largest tenants are the national carriers you mentioned, relying on USM's existing tower sites for network densification.

Here's the quick math on who is leasing space on those towers as of 1Q25:

Tenant Carrier	Percentage of Total Tower Revenue (1Q25)
T-Mobile	34 percent
Verizon	27 percent
AT&T	25 percent
Other Wireless Service Providers	14 percent

What this estimate hides is the ongoing effort to add more colocations; the company had 2,469 colocations at the end of the quarter, resulting in a tower tenancy ratio of 1.56. The third-party tower rental revenues specifically grew by 6% year-over-year in 1Q25.

Residential customers in suburban and rural areas needing broadband

This segment is served primarily through the Fixed Wireless Access (FWA) offering, targeting homes where wired broadband options are less competitive or unavailable. As of February 2025, United States Cellular Corporation surpassed 150,000 Home and Business Internet customers. The FWA subscriber base specifically grew by 21% year-over-year, reaching 150,000 subscribers in 1Q25. The strategy here is leveraging 5G mid-band deployment to enhance service quality; the company expected to cover more than 3 million households with 5G mid-band in 2025. Nearly 40% of these internet customers were using 5G mid-band speeds in early 2025. These customers value reliable coverage and often show higher satisfaction than wired internet users, according to J.D. Power data cited in February 2025.

The consumer wireless base, which includes these broadband users, stood at 4.4 million retail connections across 21 states as of 1Q25.

Small and medium-sized businesses (SMBs) requiring connectivity

United States Cellular Corporation targets SMBs with tailored wireless solutions, including IoT services and fleet management tools. While the most recent specific figure for the business segment is from the prior year, it shows the strategic direction. In the first quarter of 2024 (1Q24), business connections totaled 487,000, which represented a 7% year-over-year increase. This segment requires dependable connectivity for mobile workforces and operations. The company offers specific plans, such as the Business Unlimited Standard and Business Unlimited Advanced tiers, designed to support varying levels of tethering and data needs for these organizations.

Key offerings for this segment include:

• Business Unlimited Data Handset rate plans.
• Fleet management solutions with real-time views.
• IoT services available via the NASPO ValuePoint™ platform.
• Special deals on routers and tablets for business customers.

Government and enterprise customers for private cellular networks

The public sector is a defined customer segment, served through established procurement channels to simplify access to their services. United States Cellular Corporation has made its turnkey IoT smart solutions available on the NASPO ValuePoint™ platform, which helps state and local governments procure services efficiently. They also participate in the HGACBuy Cooperative Purchasing Program. For government agencies, the company offers exclusive unlimited data plans, with price protection guaranteed on the Monthly Recurring Charge (MRC) through at least December 31, 2025. Enterprise customers are targeted for next-level network solutions, including security and private cellular networks. First Responder Solutions are also a focus, offering priority services and enhanced LMR interoperability bundled with unlimited data plans. Finance: draft 13-week cash view by Friday.

United States Cellular Corporation (USM) - Canvas Business Model: Cost Structure

You're looking at the cost structure for United States Cellular Corporation, or what it is now-Array Digital Infrastructure-after the major wireless divestiture that closed on August 1, 2025. The cost profile has fundamentally shifted from a wireless carrier to a tower and fiber infrastructure play. Here's the quick math on where the cash is going now.

Capital expenditures (CapEx) heavily weighted toward fiber build-out (over 80%)

The primary cash outflow for capital investment is now squarely focused on fiber expansion. Management reiterated for 2025 that over 80% of CapEx is dedicated to this build-out. As of Q2 2025, the fiber footprint covered 968,000 addresses, with 53% of those addresses already served by fiber. This heavy weighting is the core of the new business model's investment strategy.

Interest expense on remaining debt, reduced by planned repayment of $870 million

The T-Mobile transaction significantly cleaned up the balance sheet. T-Mobile assumed $1.7 billion of debt, leaving Array Digital Infrastructure with approximately $364 million in debt remaining as of August 2025. This planned debt redemption is expected to save the company about $80 million annually in interest expense, which is a material reduction in recurring costs.

Wind-down and separation costs related to the wireless divestiture

Even after closing the $4.3 billion sale, there are residual costs associated with unwinding the wireless operations. While a specific total for all wind-down costs isn't itemized separately in the latest reports, management noted approximately $80 million to $90 million in other outflows related to the T-Mobile transaction, which would cover a portion of these separation activities.

Cash income tax obligations on spectrum sales

Monetizing retained spectrum assets creates significant, non-operating cash tax liabilities. You need to track these carefully, as they are large, one-time hits to cash flow:

• AT&T spectrum transaction (expected 2025 close): Estimated cash taxes of $125 million.
• Verizon spectrum transaction (expected 2026 close): Estimated cash taxes of $200 million to $250 million.

To be fair, the initial estimate you mentioned of $225 million to $325 million for T-Mobile was part of earlier discussions, but the post-closing reports detail the liabilities tied to the pending AT&T and Verizon sales.

Tower maintenance and operational costs

The retained asset base is the 4,400 owned towers, which now form the core infrastructure segment. Operational costs here are primarily maintenance and the costs associated with the Master License Agreement (MLA) with T-Mobile. In Q1 2025, before the close, third-party tower rental revenues were already up 6% year-over-year, showing the underlying cash-flow profile of the assets retained.

Here's a snapshot of the key financial shifts impacting the cost base post-August 2025:

Cost/Expense Category	Relevant Figure (Late 2025 Context)	Notes
Remaining Total Debt	$364 million	As of August 2025, post-T-Mobile debt assumption.
Annual Interest Expense Savings	Approximately $80 million	From planned debt redemption using transaction proceeds.
2025 CapEx Allocation to Fiber	Over 80%	Focus of all capital spending for the year.
Estimated Cash Taxes (AT&T Spectrum)	$125 million	Expected cash tax obligation for the 2025 closing deal.
Estimated Cash Taxes (Verizon Spectrum)	$200 million to $250 million	Expected cash tax obligation for the 2026 closing deal.
Retained Tower Count	Approximately 4,400	The physical asset base driving tower operational costs.

The shift means you trade high wireless operating expenses for high fiber CapEx and manage the tax impact from spectrum monetization. Finance: draft 13-week cash view by Friday.

United States Cellular Corporation (USM) - Canvas Business Model: Revenue Streams

You're looking at the core ways United States Cellular Corporation (USM) is bringing in cash as it pivots toward an infrastructure-focused entity, which is a big shift from its traditional wireless carrier role. Honestly, the revenue picture is dominated by the wind-down of the wireless business and the monetization of its assets.

The tower business is proving to be a reliable cash generator. Third-party tower rental revenue saw a solid increase of 6% in the first quarter of 2025 compared to the prior year. This reinforces the cash-flow profile of those tower assets, especially with management highlighting new colocations and escalators on renewed leases as drivers. The expectation is that this segment will strengthen further once the T-Mobile transaction closes and the associated tower Master Lease Agreement (MLA) begins.

A significant portion of the expected financial inflow comes from spectrum monetization, which is essentially a one-time, non-recurring revenue event. You need to track these deals closely:

• Proceeds from the sale of spectrum licenses to AT&T: a definitive agreement for $1.018 billion.
• Proceeds from the sale of spectrum licenses to Verizon: an agreement for a total consideration of $1.0 billion.

These transactions, along with the pending sale to T-Mobile, are central to the company's capital strategy. In total, definitive deals were reached to monetize around $2.02 billion of spectrum holdings that were excluded from the T-Mobile sale. The estimated net proceeds from the T-Mobile transaction itself are now likely much closer to $4.3 billion.

For the remaining core business, which is heavily focused on fiber and broadband services, the Q1 2025 results showed total operating revenues of $891 million, with service revenues at $741 million. While the wireless service revenue faced pressure, the growth in fiber connections is a key offset. In the second quarter of 2025, revenue excluding divestitures increased by 1%, specifically driven by growth in fiber subscribers and higher residential revenue per connection, even as legacy cable and copper markets continued to decline. Over 80% of the full-year capital expenditures are focused on accelerating this fiber build.

Here's a look at the key figures from the Q1 2025 period, which gives you a snapshot before the full impact of the mid-2025 transaction closes:

Metric	Q1 2025 Actual Amount	Year-over-Year Change
Total Operating Revenues	$891 million	Down from $950 million in Q1 2024
Service Revenues	$741 million	Down 2% YoY (excluding divestitures impact)
Third-Party Tower Rental Revenues	Data Not Specified Separately	Increased 6%
Free Cash Flow (FCF)	$79 million	Up 30% YoY

Regarding the overall financial outlook, despite the company not providing formal 2025 financial guidance due to the pending T-Mobile sale, the projected revenue range, which seems to align with the post-transition entity's expectations, is set between $1.03 billion to $1.05 billion for total revenue. This figure reflects the updated ranges after accounting for the divestiture of the Oklahoma ILEC market.

The non-recurring distributions tied to the major transactions are critical. While the spectrum sales to AT&T and Verizon are detailed above, the expected special dividend to shareholders, which would be a non-recurring distribution of proceeds, is anticipated to be declared upon the closing of the T-Mobile transaction, expected in mid-2025. The cash tax obligations related to the T-Mobile transaction alone are estimated to be between $225 million to $325 million, plus another $80 million to $90 million in other outflows, which you must factor into the net proceeds available for distribution.

Finance: draft 13-week cash view by Friday.