Who Owns United States Cellular Company?

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Who Owns United States Cellular Company?

The U.S. telecom industry saw a major change with T-Mobile US acquiring United States Cellular Corporation's wireless operations. This deal, finalized on August 1, 2025, highlights how crucial understanding company ownership is for strategy and market position.

Founded in 1983 as a subsidiary of Telephone and Data Systems Inc. (TDS), U.S. Cellular grew to be the fifth-largest mobile operator. Its recent 5G advancements show its dedication to industry leadership.

The ownership journey of U.S. Cellular, from its initial backers to its parent company, TDS, and recent sales, is key for stakeholders. This includes understanding its United States Cellular BCG Matrix as it transitions.

United States Cellular Corporation, now known as UScellular, was established as a cellular communications division of Telephone and Data Systems, Inc. (TDS). TDS, founded in 1968, initially focused on rural telephone companies before recognizing the burgeoning cellular market. This strategic shift led to the official incorporation of UScellular on December 23, 1983, with operations commencing in 1985.

Founding of UScellular

United States Cellular Corporation was founded as a division of Telephone and Data Systems, Inc. (TDS). TDS, established in 1968, saw the potential in cellular communications and officially incorporated UScellular on December 23, 1983.

TDS's Role

LeRoy T. Carlson, a Chicago entrepreneur, founded TDS and guided its expansion into the cellular sector. By March 1985, TDS had fully committed to developing UScellular, recognizing its significant future potential.

Early Leadership

Rudy Hornacek, a key executive within TDS, was appointed as the first president of U.S. Cellular. The company began assembling its management team in October 1984, even before securing formal FCC licenses.

Initial Operations

UScellular launched its first operations in June 1985 in Knoxville, Tennessee, followed by Tulsa, Oklahoma, in August 1985. The company's initial strategy focused on acquiring and operating cellular systems.

Public Offering and Trading

UScellular made its initial public stock offering in 1985. The company adopted the ticker symbol USM on the American Stock Exchange in 1988, marking its entry into public trading.

Foundational Ownership Structure

While specific equity distributions to individual founders were not publicly disclosed, Telephone and Data Systems, Inc. (TDS) held a controlling stake in UScellular from its inception. This established TDS as the primary owner.

The foundational ownership structure of United States Cellular Corporation was firmly rooted in its parent company, Telephone and Data Systems, Inc. (TDS). TDS, established by LeRoy T. Carlson, strategically developed UScellular as its cellular communications arm. This parent-subsidiary relationship meant that TDS held a controlling interest from the outset, influencing the company's direction and growth. UScellular's public offering in 1985 and subsequent listing on the American Stock Exchange in 1988 provided a pathway for broader ownership, but TDS's initial and ongoing significant stake remained a defining characteristic of the company's ownership history.

Key Aspects of Early Ownership

The early ownership of United States Cellular Corporation was characterized by the strong influence and controlling stake of its parent company, Telephone and Data Systems, Inc. (TDS).

• TDS, founded in 1968, established UScellular as its cellular division.
• LeRoy T. Carlson, founder of TDS, was instrumental in the company's expansion into cellular services.
• UScellular was officially incorporated on December 23, 1983, with operations beginning in 1985.
• TDS maintained a controlling ownership interest from UScellular's inception.
• UScellular conducted its first public stock offering in 1985 and began trading on the American Stock Exchange in 1988 under the ticker USM.
• The company's initial focus was on acquiring and operating cellular systems, aiming to provide high-quality wireless services.

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The ownership landscape of United States Cellular Corporation has been intrinsically linked to Telephone and Data Systems, Inc. (TDS), its parent company. A significant transformation is underway with the acquisition of its wireless operations by T-Mobile US, marking a new chapter for the company.

TDS has historically held a dominant position in United States Cellular Corporation, controlling a substantial majority of its shares and voting power. This control is largely due to a dual-class share structure where TDS's Series A Common Shares carry significantly more votes than standard Common Shares. This arrangement ensures TDS's ability to direct the company's strategic decisions. However, a pivotal shift in this structure began with the announcement in May 2024 that T-Mobile US would acquire UScellular's wireless operations and certain spectrum assets for approximately $4.4 billion. This acquisition, which was finalized on August 1, 2025, included UScellular's customer base, retail locations, and 30% of its wireless spectrum licenses. Further divestitures of spectrum assets were also completed, with sales to AT&T and Verizon for approximately $1 billion each, alongside transactions with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC.

Post-Acquisition Strategy

Following the sale of its wireless operations, United States Cellular Corporation is set to rebrand and focus on infrastructure management.

• UScellular will retain 70% of its wireless spectrum and cell sites.
• The company will be renamed Array Digital Infrastructure.
• This strategic pivot aims to leverage its remaining assets in the evolving telecommunications market.
• The company's financial performance in Q1 2025 showed operating revenues of $891 million, with net income attributable to shareholders at $18 million.
• UScellular also repurchased 328,835 of its Common Shares for $21 million in Q1 2025.

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The board of directors for United States Cellular Corporation is significantly shaped by its controlling entity, Telephone and Data Systems, Inc. (TDS). This influence is a direct result of the company's dual-class share structure, which grants disproportionate voting power to certain shareholders.

Under the Restated Charter of United States Cellular Corporation, a dual-class share structure is in place. Each Series A Common Share carries ten votes, while each Common Share has one vote. As of March 25, 2024, TDS held 33,005,877 Series A Common Shares and 37,782,826 Common Shares. This ownership translates to approximately 72.3% of the voting power for electing directors by Common Shareholders. This arrangement allows TDS to elect all directors designated for Series A Common Shares and a substantial majority of those elected by Common Shares, effectively giving TDS approximately 96.2% of the total voting power on matters other than director elections. The separation of the President and CEO roles from the Chairman of the Board is a strategic move to enhance risk oversight.

Understanding US Cellular's Voting Structure

The voting power within United States Cellular Corporation is concentrated due to its share structure. This structure ensures significant control by its parent company.

• TDS holds a majority of voting power through its Series A Common Shares.
• Series A Common Shares have ten times the voting power of Common Shares.
• This ownership model impacts how decisions are made at UScellular.
• Understanding this structure is key to grasping United States Cellular ownership.
• The company's governance reflects its relationship with its US Cellular parent company.

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The ownership landscape of United States Cellular Corporation has undergone significant shifts in recent years, largely influenced by strategic decisions made by its parent company. These changes are reshaping its operational focus and market presence.

A pivotal development occurred in August 2023 when TDS, the parent company, initiated a strategic review. This led to a substantial transaction where T-Mobile US acquired UScellular's wireless operations, including customers, retail locations, and a portion of its spectrum licenses, for approximately $4.4 billion. This deal, which closed on August 1, 2025, also includes a master license agreement for over 2,000 of UScellular's towers.

Spectrum Asset Sales

Following the T-Mobile acquisition, UScellular entered into agreements to sell additional wireless spectrum licenses. These sales, amounting to approximately $1 billion each, were made to AT&T and Verizon, along with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC.

Future Business Focus

These strategic divestitures mean UScellular will retain approximately 70% of its wireless spectrum and its nearly 4,400 owned towers. The company is set to rebrand as Array Digital Infrastructure, concentrating on infrastructure management.

Parent Company Stake

Post-T-Mobile transaction, TDS is anticipated to hold an 81% stake in the rebranded Array Digital Infrastructure. TDS also plans to issue special dividends to its shareholders.

Share Repurchases and Financials

In Q1 2025, UScellular repurchased 328,835 Common Shares for $21 million, following the purchase of 939,999 Common Shares for $55 million in 2024. This reflects a trend of share buybacks amidst the ongoing strategic realignments. For a look at the company's past, refer to the Brief History of United States Cellular.

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