US Cellular 2015 Annual Report Download - page 20

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11MAR201618514433
11MAR201618515001
2.50%
2.00%
1.73%
2.03%
1.91%
2.29%
1.73%
1.59%
1.48% 1.41%
1.31%
1.34%
1.60%
1.71%
1.50%
1.00%
0.50%
0.00%
3/31/2013
6/30/2013
9/30/2013
12/31/2013
3/31/2014
6/30/2014
9/30/2014
12/31/2014
3/31/2015
6/30/2015
9/30/2015
12/31/2015
2015-2014 Commentary
Smartphone penetration increased to 74% of the
postpaid handset customer base, up from 65% a year
ago.
The percentage of postpaid handset customers with
feature phones has continued to decrease from 35% in
2014 to 26% in 2015 and is expected to continue
declining as handset gross additions consist primarily of
smartphones. During the fourth quarter of 2015,
smartphones represented 91% of total handset sales.
Continued growth in revenues and costs related to data
products and services may result in increased operating
expenses and the need for additional investment in
spectrum, network capacity and network enhancements.
2014-2013 Commentary
Smartphone penetration increased to 65% of the
postpaid handset customer base, up from 53% a year
ago. This contributed to increased service revenues from
data.
0%
10%
20%
30%
40%
50%
60%
70%
80%
2013 2014 2015
3G
4G
12
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Quarterly Postpaid Churn Rate
Smartphone Penetration