US Cellular 2008 Annual Report Download - page 2

Service Revenues
(in billions)
0
$1.0
$2.0
$4.0
$3.0
$3.2
2006
$3.7
2007
$3.9
2008
Data Revenues
(in millions)
0
$600
$ 500
$400
$200
$300
$100
0
$55
$50
$45
$40
Average Revenue Per Unit
(in millions)
Cell Sites/
Retail Postpay Churn
2.0%
1.5%
1.0%
0.5%
0
$217
2006
$368
2007
$512
2008
$47.23
2006
$51.17
2007
$53.23
2008 2006 2007 2008
8000
6000
4000
2000
1.5%
Cell Sites
Churn (%)
1.6%
6,877
6,383
5,925
1.4%
Financials
• $3.9billioninservicerevenues
• $512millionindatarevenues
• ARPU(averagerevenueperunit)
 of$53.23
• $923millionincashowsfrom
 operatingactivities
• 1.5percentretailpostpaychurnrate
Markets and Customers
• Totaloperatingmarketpopulationof
 46millionin26states
• 6.2milliontotalcustomers
• 5.4millionretailpostpaycustomers
• 8,500full-timeequivalentassociates
Network and Infrastructure
• Invested$586milliontobuildnewcell
 sites,increasecapacityofexistingcell
 sites,purchaseequipmenttoexpand
 3G/EVDOservicestoadditionalmarkets,
 createnewretailstoresandremodel
 existingstores,andenhanceofce
 systems
• 6,877totalcellsites
• Morethan400U.S.Cellular-operated
 retailstoresand1,100locations
 representingrelationshipswithagents,
 dealers,andnon-companyretailers
Financial Highlights
(AsofDec.31,2008)
0
$100
$150
$250
$200
2003 2004 2005 2006 2007 2008
U.S. Cellular S&P 500 Index Dow Jones U.S. Telecommunicatons Index
Comparison of Cumulative Five-Year Total Returns*
U.S.Cellular®,S&P500,DowJonesU.S.TelecommunicationsIndex
(PerformanceResultsThrough12/31/08)
*Cumulativetotalreturnassumesreinvestmentofdividends.Assumes$100.00investedatthecloseoftradingonthelasttradingdayin2003inU.S.Cellular
CommonShares,S&P500Index,andtheDowJonesU.S.TelecommunicationsIndex.TheaboverepresentsselectedinformationfromtheStockPerformance
Graphincludedinthe2008AnnualReport.Formoreinformation,pleaserefertotheShareholderInformationSectioninAppendixItotheattached2009
ProxyStatement.
All data provided below is for the year ended Dec. 31, 2008.
U.S.Cellularisthenation’sfth-largest
full-servicewirelesscarrier.U.S.Cellular
operatesonacustomersatisfaction
strategy,drivingcustomerengagementby
providingacomprehensiverangeofwireless
productsandservices,superiorcustomer
support,andahigh-qualitynetwork.
U.S.Cellular’sbusinessdevelopment
strategyistobuildcontiguousoperating
marketareasbyoperatingcontrolling
interestsinwirelesslicensesinareas
adjacentorproximatetoitsother
wirelesslicenses.
U.S.Cellularisan81-percentowned
businessunitofTelephoneandData
Systems,Inc.,whichistradedonthe
NewYorkStockExchangeunderthe
symbolsTDSandTDS.S.
U.S.Cellulariscommittedtobuilding
strongrelationshipswithitscustomers,
communities,andassociates.
U.S.Cellulariscommittedtomaintaining
highlevelsofcustomersatisfactionand
loyalty,andconsistentlyranksatthetop
ofthird-partysurveysrelatedtocustomer
satisfactionandwirelesscallquality.

• J.D.PowerandAssociateshasranked
 U.S.Cellular“HighestCallQuality
 PerformanceAmongWirelessCellPhone
 UsersintheNorthCentralRegion”for
 sevenconsecutivereportingperiods.

U.S.Cellular’s8,500full-timeequivalent
associatesarecommittedtoproviding
excellentservice—thefoundationofthe
company’scustomersatisfactionstrategy.
InU.S.Cellular’s2008CultureSurvey
(performedannually),99percentof
participatingassociatesagreedthatserving
customerswastheirhighestpriority.

U.S.Cellularvaluesdifferencesandbelieves
thatadiverseandinclusiveworkforceis
criticaltobusinesssuccess.Respectfor
associatesandforcustomerscreatesan
environmentmotivatedbyethics,
empowerment,andbusinessperformance.
Thecompany’sdiversityandinclusion
strategyfocusesonveareas:workforce,
workplace,marketplace,suppliers,
andcommunity.

U.S.Cellularfocusesonimprovingthe
qualityoflifeintheareaswhereitdoes
business.Thecompanyfocusesits
communityeffortsonnonprot
organizationsservingeconomically
disadvantagedyouth,families,and
seniors—connectingpeoplewith
opportunitiesforabetterlife.Hereare
justafewofthewaysU.S.Cellularhas
contributedtoitscommunities:
• —Tohelpcombat
 reductionsinschoolfundingacrossthe
 country,U.S.Cellularintroducedits
 CallingAllCommunitiesprogramin 
 Decemberof2008.Throughthis
 grassrootsprogram,communitieslarge
 andsmallcastmorethan120,000votes,
 nominatingmorethan6,500schoolsto
 beamongthetentoreceive$100,000
 each.Theprogramharnessedcommunity
 spiritandcreatedanopportunityto
 believeinsomethingbetterfor
 children’seducation.
• U.S.Cellularcontributedmore
 than$4.2milliontoschoolsand 
 nonprotorganizations,including
 $1.2milliontotheUnitedWay;
 andinvestedin97organizations
 throughgrants,phonedonations,
 andotherphilanthropicsupport.
U.S.Cellularheadquarters,Chicago,Ill.
LicensescurrentlyoperatedbyU.S.Cellular
Licensesownedorwoninauctionby
limitedpartnershipsinwhichU.S.Cellular
isalimitedpartner