US Cellular lost 28,000 postpaid net phone customers. But in the second quarter, the fifth biggest carrier in America was able to bounce back by registering 19,000 postpaid net phone additions. The company managed to gain 4,000 net postpaid connected devices, while decreasing its customer turnover to 0.91 percent. They also added 3,000 prepaid customers, increasing the total number of prepaid customers to 484,000.
As explained by Ken Meyers, the chief executive officer of US Cellular, the gains in postpaid net phone customers and the improved churn can be attributed to the launch of unlimited plans back in February early this year. Meyers explained that the unlimited data option (introduced as part of US Cellular’s Total Plans) have contributed immensely in attracting new sign-ups.
Earnings-wise, US Cellular was able to meet profit expectations set by analysts from Wall Street. Its adjusted earnings of 17 cents per share were consistent with what three analysts had earlier projected (as surveyed by Zacks Investment Research). Despite the fact that the mobile operator was able to post total operating revenues of $963 million in Q2 2017, that figure though represented a decrease from the $992 million it recorded during the same quarter one year ago.
According to Meyers, recent cost reduction initiatives had played a significant role in driving cash expenses down in the second quarter for US Cellular. Also, decreased roaming rates and the ongoing inflow of customers availing of equipment installment plans have helped keep costs manageable, even though the volume of data traffic the carrier is handling has risen 51 percent year-over-year.
In the official quarterly report news release, Meyers also took the opportunity to announce that during the second quarter, US Cellular had completed its first ever commercial deployment of VoLTE (voice over LTE) in the state of Iowa. The carrier is now looking to launch its VoLTE offering in other US markets next year. The company also included its estimates of full-year 2017 results in the release.
Source: Fierce Wireless