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U.S. Cellular Gains from Prepaid Subscribers in Q3 Report

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U.S. Cellular reported its Q3 results earlier today. According to the Q3 results reported by the Chicago-based carrier, they were able to gain a net income of $17 million along with a 20 cents per share profit. All this was because of the 67,000 net prepaid additions made by the carrier during the quarter.

These results reported by the carrier are a little shy of the average forecast made by four analysts surveyed by Zacks Investment Research, which was 23 cents per share. But as far as estimates go for revenue, the carrier was able to outdo the forecast range as it was able to earn $1.01 billion compared to the projected $985 million.

Since the year started, U.S. Cellular shares declined 16 percent. But just in time for the Q3 results, the stock climbed up by 2 percent by mid-day Friday. U.S. Cellular CEO Ken Meyers says that the carrier has struggled to obtain its long-term goals throughout the quarter, especially since it has been a very competitive industry. Nevertheless, Meyers shares that he is pleased with the financial performance of the company and that they will continue to work hard in striving for exceptional customer experience-- both in customer service and the network being used.

It's interesting to note that the company's sales was boosted up by prepaid sales during the quarter. The company had 6,000 overall net postpaid losses, which include the 7,000 postpaid phone losses brought in by the limited iPhone 7 stocks and the recall of the Samsung Galaxy Note 7. Despite these, the company was able to add 67,000 net prepaid users, which now make up for 480,000 total prepaid users under the carrier. The new additions was able to close in the gap between the ARPU for postpaid and prepaid over the last year.

Now that U.S. Cellular's prepaid industry is gaining ground, Meyers wants to concentrate on the buying attitude of their customers. The carrier is intent on focusing on higher-end prepaid users, especially since this is a market that was once ignored by other operators.


Source: Fierce Wireless

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19 comments:

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  1. I hope US Cellular and C spire becomes competive as Sprint and other carriers.

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  2. They stopped expand coverage from 2014

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  3. I guess I don't see the appeal. There must be more shut-ins than I thought.

    Though if it is economical, it might make sense for a small regional dispatch, taxi, or delivery fleet in the small USC footprint to outfit the drivers with USC phones.

    Even if they only work well in 6 or so states.

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    1. All U.S. Cellular plans include nationwide roaming, primarily on Verizon.

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  4. There are much better (and less expensive) prepaid carriers than US Cellular.

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    1. U.S. Cellular specializes in rural coverage. In many of its markets, U.S, Cellular offers the best coverage and in some of them it offers the only coverage.

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    2. The overwhelming majority of what is "rural" in the US is ignored by USC, however. Even MetroPCS (with the focus on cities in the name) has far better rural coverage.

      As for the roaming on Verizon, does it include generous/full data roaming?

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  5. USC limiting roaming usage 800MB of data. I am not sure voice and text message but they mentioned similar as Cricket's canada/mexico roaming policy.

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  6. Cricket roaming policy is a lot different from "800 mb"

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    1. Technically it doesn't. But I was using the language of the "Cricket's canada/mexico roaming policy" statement which appeared to simply be calling Cricket's coverage in these nations "roaming"

      And as such, there's no limit on using Cricket data there other than their convoluted formula for what they consider too much non-US data usage.

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    2. Cricket doesn't roam.

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  7. Is USC on Sprint or Verizon network?

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    1. Neither, U.S. Cellular has its own network. They are the 5th largest mobile operator and offers service in California, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Minnesota, Missouri, Nebraska, New Hampshire, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, and Wisconsin, mostly in rural areas.

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    2. And USC has only a tiny bit of coverage in most of the states listed above.

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    3. USCell is the largest regional operator. They actually cover quite a few square miles, maybe as many as Sprint, but not many people. In the markets they cover they are often the only operator.

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  8. Hofo ID: Grateful4AdviceNovember 7, 2016 at 12:20 PM

    Sprint should buy US Cellular. They would regain third place, be able to advertise a credible national coverage map and have more leverage in negotiating roaming agreements.

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    1. If you look at the coverage of both, it would only be a rather slight Improvement. The coverage would still remain dismal.

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    2. Both Sprint and USC has lot of debts. Few years ago USC selled thier licensed coverage to Sprint. However, I am always welcome small regional companies.

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