US Cellular 2012 Annual Report Download - page 3

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To Our Shareholders
2012 Performance Highlights
We made solid progress on U.S. Cellular’s business strategies in 2012. We improved gross customer additions
through more effective marketing, advertising and in-store execution, and by offering prepaid and postpaid
service in Walmart stores nationwide. We increased smartphone penetration, data use and average revenue
per postpaid customer with a strong device portfolio, including iconic 4G LTE devices that helped to drive
migration to the expanding 4G LTE network. Our postpaid churn remained high, however, and the higher
subsidies for 4G LTE devices impacted profitability.
In November, we announced an important step that will position U.S. Cellular to compete more effectively.
We have agreed to divest certain underperforming Midwest markets (Divestiture Markets) to focus our
resources on growing profitably in our Core Markets, where we have stronger market share. We expect to
close the transaction by mid-2013.
J.D. Power Customer
Service Champion, 2012
Best Customer Experience
Among Wireless Carriers ,
The Customer Experience Index, 2013
Forrester Research, Inc.,
January 2013
Dierentiating through the
Customer Experience
We’re more committed than ever to

through outstanding customer experiences.
In 2012, we enhanced the areas that matter most
to our customers—with a wider range of devices,
expanded 4G LTE access, and more service
plans—and we communicated U.S. Cellular’s

Through the Hello Better advertising campaign,
we leveraged both traditional and social media
to deliver messages that encouraged

a better wireless experience with U.S. Cellular.
We also added comprehensive online sales and
service capabilities, enhanced our retail store
customer experience, and expanded our
distribution through Walmart. In addition, we
U.S. CELLULAR 1
targeted key postpaid customer segments, like
families and small and medium businesses, with

Through these initiatives, we increased gross
postpaid customer additions compared to 2011,
and achieved positive net prepaid additions.
We are working to improve retention by using

customers at risk of leaving and deliver timely

United States Cellular Corporation operates
on a customer satisfaction strategy, driving
loyalty and performance by providing a
comprehensive range of wireless services
and products, superior customer support
and a high-quality network.