US Cellular 2010 Annual Report Download - page 12

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business environment that could continue to significantly impact actual results. U.S. Cellular expects to
continue its focus on customer satisfaction by delivering a high quality network, attractively priced service
plans, a broad line of wireless devices and other products, and outstanding customer service in its
company-owned and agent retail stores and customer care centers. U.S. Cellular believes that future
growth in its revenues will result primarily from selling additional products and services, including data
products and services, to its existing customers, increasing the number of multi-device users among its
existing customers, and attracting wireless users switching from other wireless carriers, rather than by
adding users that are new to wireless service. U.S. Cellular is focusing on opportunities to increase
revenues, pursuing cost reduction initiatives in various areas and implementing a number of initiatives to
enable future growth. The initiatives are intended, among other things, to allow U.S. Cellular to accelerate
its introduction of new products and services, better segment its customers for new services and
retention, sell additional services such as data, expand its Internet sales and customer service
capabilities, improve its prepaid products and services and reduce operational expenses over the long
term.
RESULTS OF OPERATIONS
Following is a table of summarized operating data for U.S. Cellular’s consolidated operations.
As of December 31,(1) 2010 2009 2008
Total market population of consolidated operating markets(2) . . . 46,546,000 46,306,000 46,009,000
Customers(3) ..................................... 6,072,000 6,141,000 6,196,000
Market penetration(2) ................................ 13.0% 13.3% 13.5%
Total full-time equivalent employees(4) ................... 8,934 8,867 8,712
Cell sites in service ................................. 7,645 7,279 6,877
Smartphone penetration(9)(10) ......................... 16.7% 7.5% 3.7%
For the Year Ended December 31,(5) 2010 2009 2008
Net retail customer additions (losses)(6) ......................... (15,000) 37,000 149,000
Net customer additions (losses)(6) ............................. (69,000) (55,000) 91,000
Average monthly service revenue per customer(7) .................. $53.27 $ 52.99 $ 53.22
Postpaid churn rate(8) ...................................... 1.5% 1.6% 1.5%
Smartphones sold as a percent of total devices sold(9) .............. 24.6% 10.2% 6.0%
(1) Amounts include results for U.S. Cellular’s consolidated operating markets as of December 31.
(2) Calculated using 2009, 2008 and 2007 Claritas population estimates for 2010, 2009 and 2008,
respectively. ‘‘Total market population of consolidated operating markets’’ is used only for the
purposes of calculating market penetration of consolidated operating markets, which is calculated by
dividing customers by the total market population (without duplication of population in overlapping
markets).
The total market population and penetration measures for consolidated operating markets apply to
markets in which U.S. Cellular provides wireless service to customers. For comparison purposes,
total market population and penetration related to all consolidated markets in which U.S. Cellular
owns an interest were 90,468,000 and 6.7%, 89,712,000 and 6.8%, and 83,014,000 and 7.5% as of
December 31, 2010, 2009 and 2008, respectively.
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