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Overview of US Cellular Corporation (USM)
US Cellular Corporation (NYSE: USM) is a prominent regional wireless carrier that delivers comprehensive wireless connectivity and communication solutions across multiple regions in the United States. With a strong focus on rural areas and secondary markets, the company provides a range of wireless products and services, ensuring dependable network performance and excellent customer support. The business model is built upon a robust network infrastructure, including native tower ownership and intentional management of spectrum assets, supporting its position in a competitive telecommunications landscape.
Comprehensive Network and Infrastructure
The company is distinctive in its approach to managing its network assets. Unlike many of its competitors, US Cellular owns the majority of its towers, thereby retaining greater control over its infrastructure and operational capabilities. This strategy not only secures a reliable network for millions of retail connections but also facilitates the monetization of non-core spectrum and tower assets through strategic transactions. The emphasis on high-quality network reliability is reflected in the consistent service that customers rely on, regardless of the geographic challenges in less densely populated regions.
Strategic Business Operations and Revenue Generation
US Cellular generates revenue through multiple channels including wireless service subscriptions, strategic monetization of spectrum assets, and the management of its extensive tower network. By focusing on markets that are often underserved by larger national carriers, the company has carved out a niche where it can deliver tailored solutions that are both cost effective and highly reliable. The company’s revenue streams are further diversified through selective asset transactions with major industry players, ensuring the scalability of its operations while maintaining fiscal discipline.
Market Position and Competitive Landscape
Positioned uniquely within the telecommunications industry, US Cellular operates mainly in rural and second- or third-tier urban areas, providing essential connectivity to communities that may otherwise be overlooked by larger carriers. This specific market focus, combined with its dedicated service and strong tower infrastructure, distinguishes the company from competitors such as T-Mobile, AT&T, and Verizon. The company’s strategic management of spectrum assets also adds depth to its competitive advantage, allowing it to focus on generating predictable revenue from its infrastructure investments.
Operational Excellence and Customer Focus
At its core, US Cellular is committed to connecting people to what matters most. The company’s operational excellence is underpinned by a mission-driven culture where associates work collaboratively to deliver high-quality wireless services. With a focus on customer satisfaction, the company continuously adapts its service offerings to meet the evolving needs of its diverse customer base. This dedication is evident in the carefully managed balance between cost discipline and investment in network improvements.
Expertise in Spectrum and Asset Management
One of the significant aspects of US Cellular’s business model is its expertise in managing spectrum assets. The company retains a substantial portion of its spectrum portfolio across several bands and selectively monetizes non-core assets to unlock additional value. This focused approach not only optimizes the use of available spectrum but also supports strategic partnerships and asset transactions with other leading mobile network operators, fostering a reliable revenue stream without compromising the quality of service provided to its customers.
Conclusion
US Cellular Corporation stands out in the telecommunications sector for its proven track record in delivering dependable wireless services, especially in markets that demand flexible and sustainable connectivity solutions. Its commitment to network excellence, strategic asset management, and a customer-first philosophy positions the company as a pivotal player within its operational territories. Whether viewed from the perspective of network infrastructure management or customer-centric service delivery, US Cellular continues to underscore its dedication to connecting people through a trusted, high-quality wireless network.
UScellular (NYSE: USM) has announced the postponement of its 2025 Annual Meeting of Shareholders, which was originally scheduled for May 20, 2025. The delay is attributed to the timing of the company's pending transaction with T-Mobile US, expected to close in mid-2025, subject to regulatory approval and customary closing conditions.
As a result of this postponement, UScellular will file a Form 10-K/A to amend its Annual Report on Form 10-K for the year ended December 31, 2024. This amendment will include certain items that would have typically been incorporated by reference from the Proxy Statement. The new meeting date has not yet been determined, with the company promising to provide updates when available.
UScellular (NYSE: USM) reported Q4 2024 operating revenues of $970 million, down from $1,000 million in Q4 2023. Q4 2024 net income was $5 million ($0.05 per share), compared to $14 million ($0.16 per share) in Q4 2023.
For full-year 2024, total operating revenues were $3,770 million, down from $3,906 million in 2023. The company reported a net loss of $39 million (-$0.46 per share) for 2024, compared to net income of $54 million ($0.63 per share) in 2023. Excluding a Q3 2024 license impairment of $136 million ($102 million after tax), adjusted net income was $63 million ($0.71 per share).
Key 2024 highlights include announced transactions with T-Mobile and spectrum deals with various operators, improved postpaid and prepaid churn, 27% growth in fixed wireless customers, and increased cash flows. The company repurchased 939,999 Common Shares for $55 million during 2024.
Telephone and Data Systems (TDS) and United States Cellular (USM) have announced they will release their fourth quarter operating results on February 21, 2025. The companies will host a conference call and webcast at 9:00 a.m. Central Time on the same day.
TDS, founded in 1969 and headquartered in Chicago, provides wireless, broadband, video, and voice services to approximately 6 million connections nationwide through its businesses, UScellular and TDS Telecom. As of September 30, 2024, the company employed approximately 8,000 associates.
Investors can access the webcast through the events & presentations pages of investors.tdsinc.com or investors.uscellular.com. Registration is recommended at least 15 minutes before the start time.
Telephone and Data Systems (TDS) announced significant leadership changes effective February 1, 2025. Walter C. D. Carlson, current Board Chair, will succeed LeRoy T. Carlson, Jr. as President and CEO. Carlson Jr. will transition to a newly created Vice Chair position focusing on enterprise strategy while maintaining his role as Chair of the Board of UScellular.
Walter Carlson, who has served on the TDS Board since 1981 and as non-executive Chair since 2002, brings extensive experience in guiding TDS through wireless industry development, UScellular's growth, and TDS Telecom's transformation into a broadband company. Additionally, Christopher D. O'Leary, a board member since 2006, has been appointed as Lead Independent Director.
Walter Carlson's professional background includes 44 years at Sidley Austin LLP, where he was a partner for 37 years and served on its Executive Committee from 2002-2018. He holds degrees from Yale University and Harvard Law School.
TDS and UScellular have announced their participation in two upcoming conferences. At the Wells Fargo 8th Annual TMT Summit Conference on December 3, 2024, UScellular's CFO Doug Chambers will present at 1:15 p.m. ET. Subsequently, at the Raymond James 2024 TMT and Consumer Conference on December 9, 2024, TDS Telecom President Jim Butman and UScellular VP Fred Lubeley will present at 1:40 p.m. ET.
TDS serves approximately 6 million connections nationwide through UScellular and TDS Telecom. UScellular currently maintains 4.5 million retail connections across 21 states, with TDS owning approximately 83% of UScellular as of Q3 2024.
UScellular has announced an agreement to sell select spectrum assets to AT&T for $1.018 billion. The deal involves 1,250 million MHz-Pops of 3.45 GHz and 331 million MHz-Pops of 700 MHz B/C block licenses. This transaction is part of UScellular's strategy to monetize spectrum not included in the T-Mobile sale. Following this and previously announced transactions, UScellular will have agreements to monetize about 70% of its total spectrum holdings, representing approximately $2.02 billion in total consideration. The company will retain 1.86 billion MHz-Pops of low and mid-band spectrum, plus 17.2 billion MHz-Pops of mmWave spectrum.
UScellular (NYSE:USM) reported Q3 2024 results with total operating revenues of $922 million, down from $963 million year-over-year. Service revenues decreased to $747 million from $762 million. The company reported a net loss of $79 million ($0.92 per share), compared to net income of $23 million ($0.26 per share) in Q3 2023. The results include a $136 million license impairment charge related to high-band spectrum. The company announced spectrum sales worth $1 billion to Verizon and additional sales to other operators. Based on improving metrics, UScellular raised its 2024 Adjusted EBITDA guidance to $970-$1,045 million.
Telephone and Data Systems (TDS) and United States Cellular (USM) announced they will release their third quarter operating results on November 1, 2024. The companies will host a conference call and webcast at 9:00 a.m. Central Time on the same day. TDS provides wireless, broadband, video, and voice services to approximately 6 million connections nationwide through UScellular and TDS Telecom. The company, founded in 1969 and headquartered in Chicago, employed about 8,500 associates as of June 30, 2024.
UScellular has announced the sale of select spectrum assets for $1.0 billion. The company has reached an agreement with Verizon Communications to sell 663 million MHz POPs of Cellular spectrum, 11 million MHz POPs of AWS, and 19 million MHz POPs of PCS licenses for $1.0 billion in cash. Additionally, UScellular has agreements with two other mobile network operators to sell 12 million MHz POPs across CBRS, C-Band, and 700 MHz B/C Block bands.
These transactions are part of UScellular's objective to monetize spectrum not included in the proposed sale to T-Mobile. The deals are subject to regulatory approvals and customary closing conditions. Following these transactions, UScellular will retain 3.4 billion MHz POPs of low and mid-band spectrum and 17.2 billion MHz POPs of mmWave spectrum. The company continues to seek opportunities to monetize these retained assets.
TDS Telecom and UScellular, subsidiaries of Telephone and Data Systems, Inc. (NYSE: TDS), have announced their participation in two upcoming September conferences. TDS Telecom will present at Citi's 2024 Global TMT Conference on September 5, with Michelle Brukwicki, senior VP of finance & CFO, speaking. UScellular will attend the 2024 RBC Capital Markets Global Communications Infrastructure Conference on September 25, with Doug Chambers, EVP, CFO & Treasurer, hosting one-on-one meetings.
TDS, founded in 1969 and headquartered in Chicago, provides wireless, broadband, video, voice, and IT services to approximately 6 million connections nationwide through its businesses. As of June 30, 2024, TDS employed about 8,500 associates and owned approximately 82% of UScellular, which had 4.5 million retail connections in 21 states.
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