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U.S. Cellular Loses Subs, Adds Data Revenues

By Andrew Berg | November 4, 2010

U.S. Cellular saw service revenues drop slightly in the third quarter, and the regional carrier lost roughly 25,000 subscribers.

U.S. Cellular saw service revenues of $983.5 million for the third quarter of 2010, versus $983.9 million in the comparable period one year ago.

Net income attributable to U.S. Cellular shareholders and related diluted earnings per share were $37.4 million and $0.43, respectively, for the third quarter of 2010, compared with $34.3 million and $0.39, respectively, in the comparable period one year ago.

The company noted that while service revenues were down, revenue attributable to data rose 31 percent to $228.9 million, representing 23 percent of total service revenues compared with 18 percent in 2009.

“Our-third quarter results reflect a strong increase in data revenues driven by higher levels of smartphone penetration. We also experienced renewed growth in roaming revenues and maintained our focus on cost control,” said Mary N. Dillon, U.S. Cellular president and CEO, in a press release. 

The trend is not uncommon across the industry, as carriers add more high-end smartphones to their device portfolios. As part of its Belief Project, an initiative to increase customer satisfaction, U.S. Cellular has added two Android smartphones, the Samsung Mesmerize and HTC Desire, as well as announcing the Samsung Galaxy Tab tablet.

Telephone and Data Systems (TDS), U.S. Cellular’s parent company, reported operating revenues of $1,266.4 million for the third quarter of 2010, an increase of 1 percent from $1,257.7 million in the comparable period one year ago.


Filed Under: Carriers

 

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