News by Andrew Kameka on Friday August 03, 2012.
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U.S. Cellular reported higher gross additions in the second quarter of 2012, but a 1.57 percent churn rate led to a net loss of subscribers. U.S. Cellular's U Prepaid no-contract partnership with Walmart led to a net increase of 20,000 prepaid customers; however, the carrier reported a net loss of 48,000 postpaid customers. The 28,000 retail customer net loss was less than the 58,000 net loss during the same period last year.
Fewer subscribers and higher costs for smartphone subsidies contributed to a 30 percent drop in profits. U.S. Cellular reported a $52.7 million profit from revenues of $1.02 billion.
U.S. Cellular also revealed that its LTE network now reaches 30 percent of its current customers, and the carrier plans to reach 58 percent by the end of the year. VP of Marketing Dave Kimble said that company actively encourages feature phone users to upgrade to LTE-capable devices like the Samsung Galaxy S III. U.S. Cellular added that 17 percent of smartphones sold last quarter were LTE-capable.source: U.S. Cellular
Andrew is based in Miami, Florida.