5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

U.S. Cellular Passed On iPhone, ‘Risks Unacceptable’

By Staff Author | November 4, 2011

U.S. Cellular CEO Mary Dillon dropped an interesting bit of information during the company’s earnings call this morning. U.S. Cellular was approached by Apple about selling the iPhone, but decided against it.

“We had the option to add the iPhone to our device lineup, but the risks were unacceptable,” Dillon said.

When J.P. Morgan analyst Philip Cusick asked Dillon about it later on in the call, she said “it didn’t make sense for our business economically.”

Cusick’s response: “I don’t blame you.”

Sprint is shelling out a whopping $15.5 billion over the next four years for the iconic device. C Spire Wireless, a regional operator which will begin selling the iPhone on Nov. 11, hasn’t said how much it is paying for the smartphone.

U.S. Cellular differentiates itself more by the quality of its customer service than the strength of its device lineup, as evidenced by its customer-centric Belief Project. The iPhone was simply too expensive to be worth the risk for the regional operator, which is struggling to retain its highest paying postpaid customers.

Dillon said the company already has several high-end smartphones in its holiday lineup, including the Motorola Electrify and HTC Hero S, but conceded that competition from the iPhone would be “intense.” The iPhone is now available at three of U.S. Cellular’s four largest competitors.

U.S. Cellular lost 23,000 net retail customers during the third quarter after the loss of 34,000 postpaid customers was offset by a gain of 11,000 prepaid subscribers. Overall, the company lost 36,000 net customers, bringing its total subscriber base to 5.93 million.

Despite the losses, the company posted a healthy churn rate of 1.5 percent and increased postpaid ARPU to $52.41, from $51.84 last year. Service revenues increased slightly to $1.03 million.

Smartphone customers now comprise 26 percent of the company’s postpaid subscribers, from just 12 percent last year. Nearly 40 percent of all devices sold by U.S. Cellular are now smartphones.

In all, U.S. Cellular made $62 million on sales of $1.03 billion.

The company warned it could take a hit from the FCC’s recent overhaul of the Universal Service Fund (USF). The company will see a 20 percent annual reduction in legacy support beginning next year. However, that reduction could be offset by reduced rates for intercarrier compensation also laid out in the plan.

Related Articles Read More >

High-directivity couplers optimized for 225 – 750 MHz applications
Integrated into IoT devices, iSIM poised to make inroads
Triple-radio and multiprotocol MCUs add application processors
5G vectors
How RedCap fits into 5G and IoT

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: Internet of Things
Explore practical strategies for minimizing attack surfaces, managing memory efficiently, and securing firmware. Download now to ensure your IoT implementations remain secure, efficient, and future-ready.

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World