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U.S. Cellular to Cut 1,000 Jobs as Part of Sprint Divestiture

Article Comments  7  

Nov 7, 2012, 9:45 AM   by Eric M. Zeman   @phonescooper
updated Nov 7, 2012, 9:49 AM

U.S. Cellular today explained some of the thinking behind its decision to sell about 10% of its customers in addition to select PCS wireless spectrum to Sprint. According to U.S. Cellular, the customers in the large markets it is divesting (Chicago, St. Louis, South Bend, et al.), were more costly to obtain and had a churn rate twice as high as that of other markets served by U.S. Cellular. U.S. Cellular said that it expects to close its retail stores, offices, and network centers in the markets affected, and it will not retain the employees working at those locations. Total job loses amount to more than 1,000 employees, mostly in the greater Chicago areas. U.S. Cellular will, however, keep its corporate headquarters (and about 860 jobs) in Chicago. U.S. Cellular believes that the transaction, which is valued at $480 million and still subject to regulatory approval, will allow it to better focus on expanding and improving services in markets where obtaining and retaining customers is more cost effective. U.S. Cellular expects the deal to close in mid 2013.

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Nov 7, 2012, 4:35 PM


Excuse my ignorance here but this move seems odd to me. I know that the talk with Sprint has been mergers with Metro or Leap, but what is the possibility of a US Cellular acquisition? It the spectrum of US Cellular all in the PCS band at 1900 as well?
According to the description of US Cellular on this website, the majority of the CDMA network is Cellular band 850, and it also says they have AWS and 700Mhz spectrum, along with 1900.
Sprint can't acquire Metro, as Metro has already merged with T-Mobile.

Nov 7, 2012, 2:48 PM

Good for Chicago customers

This will be good for Sprint customers in these areas. It will greatly increase coverage and capacity there.
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