US Cellular 2008 Annual Report Download - page 4

As U.S. Cellular continues to bring more high-demand, data-intensive devices to market, and makes
3G speeds available to much more of its network, the company expects ongoing revenue growth in this
area. Smart phone-related ARPU for many customers is nearly twice as high as standard retail postpay
ARPU. Thus, the revenue growth potential is considerable, despite a higher upfront smart phone
equipment subsidy.
Investing for the Future
U.S. Cellular took important steps in 2008 to ensure that its network supports developing customer
needs for technology. The company expanded its 3G network to approximately 23 percent of its cell
sites, and intends to bring 3G speeds to at least 60 percent of its cell sites by the end of 2009. The
company also continued to add many new cell sites in 2008—financing the expansion in part with
Universal Service Fund (USF) disbursements.
These investments enabled U.S. Cellular to maintain its award-winning network 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, indirectly through its limited partnership interest in King Street Wireless, made strategic
investments in spectrum in 2008 through participation in a major Federal Communications Commission
(FCC) auction. The company also made several direct spectrum acquisitions. The spectrum covers areas
that complement U.S. Cellular’s strategic footprint and could help support an eventual transition to 4G/
Long-Term Evolution network technology.
At year end, U.S. Cellular was well-positioned for strong future growth, with a total operating market
population of 46 million in 26 states.
Share Repurchases
To partially offset dilution from various benefit plans, U.S. Cellular repurchased 600,000 shares in
2008 for $32.9 million.
Government Relations
Throughout 2008, U.S. Cellular vigorously defended the USF against attempts to reduce or eliminate
the support available to competitive wireless carriers. The company continued its Connecting Rural
America (CRA) campaign to increase awareness of how proposed changes to the USF would affect
access to advanced wireless communications in rural areas. As part of the CRA campaign, U.S. Cellular
enlisted more than 100 members of Congress, governors, and state legislators, and numerous public
safety and economic development groups, to support its efforts to bring reliable wireless service to rural
communities.
The FCC imposed a cap on wireless funding in 2008, but did not otherwise substantively restrict
U.S. Cellular’s access to the USF support needed to continue to expand its network to rural
communities. The company expects that the 2009 regulatory environment for USF will continue to be
challenging. U.S. Cellular is committed to continuing to ensure that rural areas of the United States have
equal access to advanced wireless telecommunications.
Associates
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. The company is equally committed to its associates, and this commitment was reflected
in several workplace awards in 2008:
• Best Large Company to Work for in Oregon, Oregon Business magazine
• Best Places to Work in Oklahoma, Second Place, Large Companies Category, OKCBusiness
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