US Cellular 2015 Annual Report Download - page 17

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11MAR201607260845
13MAR201601440360
BUSINESS OVERVIEW
U.S. Cellular owns, operates, and invests in wireless markets throughout the United States. U.S. Cellular is an 84%-
owned subsidiary of TDS. U.S. Cellular’s strategy is to attract and retain wireless customers through a value proposition
comprised of a high-quality network, outstanding customer service, and competitive devices, plans, and pricing, all
provided with a local focus.
U.S. Cellular headquarters, Chicago, IL
U.S. Cellular operations
ᔢServes approximately 4.9 million customers including 4.4 million postpaid and 0.4 million prepaid customers.
ᔢOperates in 23 states.
ᔢEmploys approximately 6,400 employees.
ᔢHeadquartered in Chicago, Illinois.
ᔢ6,297 cell sites including 3,978 owned towers in service.
SIGNIFICANT TRENDS AND DEVELOPMENTS
Technology and Support Systems:
ᔢU.S. Cellular continued to deploy 4G LTE as a result of U.S. Cellular’s strategic initiative to enhance its network. 4G
LTE now reaches 99% of postpaid customers and 98% of cell sites. The adoption of data-rich smartphones and
connected devices is driving significant growth in data traffic. At the end of the year, 72% of postpaid customers had
4G capable devices, with the LTE network handling 81% of data traffic. Also, U.S. Cellular began user trials related to
VoLTE technology to allow customers to utilize the LTE network for both voice and data services, and these trials are
anticipated to continue into 2016.
ᔢIn 2015, U.S. Cellular spent $285.8 million in cash for license acquisitions, the majority of which came from U.S.
Cellular’s participation in Auction 97 indirectly through its limited partnership interest in Advantage Spectrum.
9
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
U.S. CELLULAR OPERATIONS
OPERATIONS