US Cellular 2008 Annual Report Download - page 3

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UNITED STATES CELLULAR CORPORATION
8410 West Bryn Mawr Avenue
Suite 700
Chicago, Illinois 60631
Phone: (773) 399-8900
Fax: (773) 399-8936
April 15, 2009
TO OUR SHAREHOLDERS
United States Cellular Corporation is the fifth-largest full-service wireless service provider in the
United States. Operating on a customer satisfaction strategy, U.S. Cellulardrives customer engagement
by providing a comprehensive range of wireless services and products, superior customer support and a
high-quality network.
2008 Overview
U.S. Cellular achieved solid results in 2008, despite pressure from the widespread economic
downturn, a more mature wireless market, and competition from increasingly large national providers.
U.S. Cellular ended the year with 6.2 million total customers. Ninety-five percent of the company’s retail
customers are in the target postpay segment.
Although the number of people who do not yet have a wireless phone continues to decline, more
are using multiple wireless devices: for business and personal use, and for primarily data use, such as
laptops and netbooks. U.S. Cellular is implementing strategies designed to drive deeper and longer
customer engagement, generate greater revenue from existing customers, and attract customers seeking
a high-quality wireless experience. In particular, U.S. Cellular is building on its very strong network quality
and superior customer service to deliver high-quality wireless voice and data experiences.
U.S. Cellular drove data growth with its robust portfolio of voice- and data-enabled handsets,
including smart phones and premium touch screen phones, which in turn propelled growth of
complementary data plans and applications, including the company’s popular new Mobile Internet plans.
To support both current and future data needs, U.S. Cellular expanded its 3G/Evolution Data Optimized
(EVDO) network to cell sites in key markets during the year.
These complementary initiatives, along with customers’ increased use of text and picture messaging
services, drove a significant increase in data revenues and ARPU, which in turn increased service
revenues for the year.
Connecting Customers with U.S. Cellular
In June of 2008, U.S. Cellular rolled out a new marketing and brand positioning initiative to define its
unique qualities and benefits for customers, and to thereby forge stronger customer relationships. In its
retail and sales environments, marketing materials, and advertising, U.S. Cellular encourages its existing
and potential customers to ‘‘Believe in Something Better’’—to believe in a unique wireless company
that shares their values and understands their needs.
U.S. Cellular is backing up its market positioning with services and features that demonstrate its
commitment to providing a superior wireless experience, such as free incoming calls, free storage of
customer contacts (My Contacts Backup), early upgrades with no fees, and free plan changes.
Delivering a Superior Mobile Data Experience
U.S. Cellular customers can choose from a strong lineup of devices, including BlackBerrysmart
phones, and premium touch screen phones from HTC, Samsung, and LG.