US Cellular 2013 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2013 US Cellular annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

United States Cellular Corporation
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Summary Operating Data for U.S. Cellular Core Markets
Following is a table of summarized operating data for U.S. Cellular’s Core Markets (which excludes the
Divestiture Markets and NY1 and NY2 markets) as of or for the year ended December 31, 2013 or 2012.
As of or for the Year Ended December 31, 2013 2012
Retail Customers
Postpaid
Total at end of period ........................ 4,267,000 4,496,000
Gross additions ............................ 682,000 746,000
Net additions (losses) ....................... (217,000) (92,000)
ARPU(1) ................................. $ 54.23 $ 53.65
Churn rate(2) .............................. 1.7% 1.5%
Smartphone penetration(3)(4) .................. 50.8% 41.1%
Prepaid
Total at end of period ........................ 343,000 342,000
Gross additions ............................ 295,000 288,000
Net additions (losses) ....................... 2,000 124,000
ARPU(1) ................................. $ 31.45 $ 32.98
Churn rate(2) .............................. 6.7% 5.2%
Total customers at end of period ................. 4,774,000 5,022,000
Billed ARPU(1) ............................... $ 50.82 $ 50.54
Service revenue ARPU(1) ....................... $ 57.66 $ 58.49
Smartphones sold as a percent of total devices sold . . 68.6% 56.1%
Total Population
Consolidated markets(5) ....................... 58,013,000 83,384,000
Consolidated operating markets(5) ................ 31,759,000 31,445,000
Market penetration at end of period
Consolidated markets(6) ....................... 8.2% 6.0%
Consolidated operating markets(6) ................ 15.0% 16.0%
Capital expenditures (000s) ..................... $ 735,082 $ 768,884
Total cell sites in service ....................... 6,161 6,130
Owned towers in service ....................... 3,913 3,847
(1) ARPU metrics are calculated by dividing a revenue base by an average number of
customers by the number of months in the period. These revenue bases and customer
populations are shown below:
a. Postpaid ARPU consists of total postpaid service revenues and postpaid customers.
b. Prepaid ARPU consists of total prepaid service revenues and prepaid customers.
c. Billed ARPU consists of total postpaid, prepaid and reseller service revenues and
postpaid, prepaid and reseller customers.
d. Service revenue ARPU consists of total retail service revenues, inbound roaming and
other service revenues and postpaid, prepaid and reseller customers.
(2) Churn metrics represent the percentage of the postpaid or prepaid customers that
disconnects service each month. These metrics represent the average monthly postpaid or
prepaid churn rate for each respective period.
(3) Smartphones represent wireless devices which run on an Android, Apple, BlackBerry or
Windows Mobile operating system, excluding tablets.
6