U.S. Cellular has been struggling for growth in recent years. However, like the childhood story of Rip Van Winkle, they seem to be waking up after a very long nap and targeting AT&T Mobility and Verizon Wireless. The question is, will 2015 be the start of a long-awaited recovery for the company? Let’s take a closer look.
U.S. Cellular is a regional wireless network, ranked No. 5 after AT&T Mobility, Verizon Wireless, Sprint and T-Mobile US. Their stalled growth story sounds similar to what we heard from Sprint and T-Mobile US a few years ago. Just like these two companies restarted their growth engines, I believe U.S. Cellular can do the same if they take a successful path.
Will they, is the question. They have been stuck in a loss mode for quite a long time, however they are starting to make some noise. As a wireless analyst I have followed all the companies in the wireless industry for decades. I’ve seen fortunes rise and fall on the network side and handset side.
While U.S. Cellular has a long climb ahead, I do think they can grow if they do certain things well. However it will be a while before we know whether they are on a growth track or not. Either way it’s good to see them waking up and starting to rev their engines once again.
Growth depends on success in several areas
There are several areas they need to be successful. One of those areas is their brand. Who is U.S. Cellular? What place to they represent in the minds and hearts of the marketplace? They have a problem with their weakened brand today.
How would you describe them?
Why would you buy from them?
They need to create a meaningful brand that resonates with at least a slice of the marketplace. Then they need to stick their flag in the ground and build from that point.
Another area is improved messaging. That means marketing, advertising, social media and public relations. They must win at all the many ways to connect with the customer. They must create a vibrant image in the customers mind. They must stand out in an increasingly noisy marketplace.
Another is they must decide which slice of the customer pie they want to focus on first. Will they take a wide approach or will they target one slice of the pie? Companies like AT&T Mobility, Verizon Wireless and Sprint focus on the larger marketplace, but they do this by focusing on different slices of the pie in different ways. Other companies like T-Mobile US focus on one slice, the rebellious youth and focus their marketing in that area.
It’s also very important for U.S. Cellular to successfully communicate with various influential and important groups like analysts, media, investors, regulators and others. Bring them up to speed in a positive way. As an analyst, I hear from nearly every wireless carrier keeping me up to speed on every move they make. They want to make sure they tell their story. However I seldom hear from U.S. Cellular. That weak link needs to be strengthened.
These are just a few examples, but I think you can see there are several areas that the company must improve on in order to improve and modernize their image and performance. This is a tough job, but it’s not impossible. In fact we have seen two carriers, Sprint and T-Mobile US do the same job in recent years. So it can be done.
If U.S. Cellular wants to be heard in an increasingly noisy marketplace, they had better get a blow horn and start attracting positive attention. Before they do this they should obviously create a short and long-term strategy rather than just shooting from the hip. Plus they must make sure they are ready technically with speed, quality and coverage both in the network and customer care operations.
Then if they are fortunate enough to punch their way onto the map, the next step is to stay there. Winning can be achieved by every wireless player. Winning is something they must keep at continuously. Winning is a direction companies must continue to drive toward. It’s not a destination.
If winning companies don’t keep feeding the fire, it will go out. The question is does U.S. Cellular understand how important these areas are as different ingredients to their success? The most successful companies do.
So it’s good to see them starting to make noise attracting customers to their services and trying to win business away from larger competitors. Will they be successful long term is always the question. Let’s keep our eyes on them and see. I wish them success.
