Regional wireless operator U.S. Cellular unveiled a new trial test drive program for customers allowing them to check coverage in areas where they actually travel before signing up for service. The offering is currently being tested in Knoxville, Tenn.; Medford, Ore.; and Rocky Mount, N.C.
The carrier noted that the program will allow potential customers to try out U.S. Cellular’s service for up to one week before signing a contract for postpaid services. U.S. Cellular did note that the test drive program was being offered for a limited time.
The move is significant for the carrier as it continues to search for unique ways to compete against larger rivals. U.S. Cellular reported it lost 10,000 customers across its network during the fourth quarter of 2012, which was down sequentially from the 9,000 net additions posted during the previous quarter, but a strong improvement from the 41,000 customers lost during the fourth quarter of 2011. The carrier ended 2012 with nearly 5.8 million customers on its network, down slightly from the 5.9 million at the beginning of the year.
The carrier has moved aggressively to rollout LTE services across its network, including acquiring 700 MHz spectrum licenses from Verizon Wireless in support of those efforts.
U.S. Cellular has also moved to consolidate its operations, announcing late last year a plan to sell its operations in Chicago, St. Louis and a handful of markets in the Midwest to Sprint Nextel for $480 million. The transaction, which is expected to close by the middle of the year, will include both spectrum assets in the 1.9 GHz band and approximately 585,000 customers.
The deal has U.S. Cellular abandoning many of its core Midwest markets in favor of more rural areas where it has deeper penetration and less intense competition from larger rivals, however it will maintain its operational headquarters in the Chicago area. The carrier said at the time the deal was “designed to increase focus on markets where it has strong positions and streamline operations to increase overall efficiency and effectiveness.”
“In the dynamic wireless marketplace, we have a clear strategy to accelerate profitable growth and increase return on investment over the long term, and we are taking decisive steps to achieve it,” said Mary Dillon, president and CEO of U.S. Cellular. “Exiting these markets enables us to play to our strengths in markets where we have higher penetration and where we can effectively sharpen our proven strategy to differentiate the U.S. Cellular customer experience from other wireless carriers.
U.S. Cellular has also reportedly moved ahead with plans announced with that deal to shed jobs. The Chicago Tribune reported that U.S. Cellular plans to cut more than 600 jobs in Illinois in the coming weeks as part of the Sprint Nextel deal. U.S. Cellular said the deal would result in approximately 980 job cuts across the sold markets, including 160 job cuts in Chicago and 640 total job losses in the greater Chicago area.
“U.S. Cellular has filed notice according to the Worker Adjustment and Retraining Notification Act regarding the 765 impacted jobs in Chicago, St. Louis, central Illinois and three other Midwest markets that were announced as part of the Sprint transaction in November 2012,” the company noted in a statement. “The transaction is part of U.S. Cellular’s business strategy to focus our resources on markets where we have a strong position by divesting underperforming markets. Throughout the process, U.S. Cellular has kept associates informed and will continue to provide support for affected associates as they make their career transitions.
In the meantime, there is no change for U.S. Cellular customers in these markets. Their phones will continue to work throughout the transition process, and they will have ample time to transition after the transaction is closed, which we expect in the second quarter of 2013. Once it closes, Sprint will provide additional information for customers.”
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