U.S. Cellular lowers expectations, scores extra spectrum

U.S. Cellular, the nation’s sixth-largest carrier in terms of subscribers, said it expects a shortfall in the number of its 2007 customer additions. The carrier also reported it spent $13.1 million to acquire eight spectrum licenses covering four states.
The licenses “will provide U.S. Cellular with addition spectrum to meet anticipated future capacity and coverage requirements in several of its key markets,” the carrier said.
U.S. Cellular’s stock was down slightly to $82.22 after the news.
The carrier said it now expects to add between 325,000 and 340,000 subscribers during 2007. U.S. Cellular however reaffirmed its guidance for service revenues, depreciation, amortization and accretion, and capital expenditures.
U.S. Cellular currently counts around 6 million customers.
As for the carrier’s new spectrum, U.S. Cellular reported that it purchased the licenses from an unnamed “wireless service provider.” The carrier said it scored personal communication service (PCS) spectrum in eight licenses covering portions of four states. All licensed areas included in the agreement represent 10 MHz portions of spectrum in the 1900 MHz band.
The carrier was not immediately available to provide details, including where the spectrum is located.