US Cellular accelerates EV-DO push, weighing LTE trial
US Cellular rolls out its 3G network, but holds off on any LTE decisions, as subscriber growth slows in the first quarter
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The company, a division of Telephone & Data Systems (NYSE: TDS) that operates in 26 states, has faced mounting pressure from regional providers with cheaper plans, including Leap Wireless and MetroPCS, as well as unlimited prepaid provider Boost Mobile. At its fourth-quarter earnings call, Ellison dismissed the threat that Leap and Metro presented, because of US Cellular‘s postpaid focus. Still, the company is concentrating more on prepaid and was forced to begin a win-back campaign targeted at customers who left the carrier for Leap or Boost, Ellison said.
Fellow regional telco Cincinnati Bell (NYSE: CBB), which reported earnings this week, also saw an increase in profit, totaling $28.8 million in the first quarter, more than double its profit this time last year. Despite the profit, the carrier announced plans to reduce its workforce by 7%, totaling 200 jobs, as the economy continues to challenge its business. First quarter revenues were $325.5 million, down $23 million from the previous quarter.
Cincinnati Bell also announced that it will be the first to offer Nokia's 5800 XpressMusic touch-screen handset. An unsubsidized version of the phone has been available in the U.S. for $400, but the independent carrier is the first to ink a deal with Nokia to offer the handset, offering it for $149 with a two-year contract and mail-in rebate. The device still lacks Nokia's unlimited downloading service Comes With Music, which has only attracted 23,000 subscribers in the UK market, according to Music Ally. Nokia has, however, claimed to have sold more than three million XpressMusic phones globally since its release in October of last year.
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