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U.S. Cellular Passes On the iPhone, Tiered Plans Coming

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Nov 4, 2011, 12:24 PM
With these kind of decisions it amazes me how this company is still in business. You don't pass up the iPhone. You don't. Love it or hate it, it sells.

This company will be Big Red's in a few years anyway so who cares. Moving on....

Nov 4, 2011, 1:51 PM
My understanding is that Sprint is going to get it's profits nailed short term by offering the iPhone in it's lineup.
They are going to have to pay Apple full price for the phone, turn around and sell them for it's subsidized cost and wait and wait and wait for it's return.
It may not be possible or wise for smaller carriers to handle this. If Sprint doesn't sell that many iPhones (I know it's a big if) they may be in for a world of hurt.

time will tell I guess

Nov 6, 2011, 8:44 AM
---" It may not be possible or wise for smaller carriers to handle this."---

You would be correct. It is my belief that under Apple's model, the only way carriers are going to make money, is through signed two year contracts. Carriers just want subs. If carriers are prepaid, the financial stakes and terms are too high to sustain. If Verizon, ATT and Sprint were prepaid only, they would not have agreed to such terms.

US cellular made a wise decision. To offer a 660-800 dolllar prepaid iPhone on a prepaid network, negates the whole premise of inexpensive communicational needs.

John B.
T Bone

Nov 6, 2011, 6:39 PM
US Cellular has contracts and is not just pre-paid only...

But the cost of the iPhone is an important factor, the iPhone was the first phone where AT&T required as part of its terms and conditions for the phone that a data plan was necessary.

It is my understanding that the reason for the data plan requirement for the iPhone was to recoup the cost of the exclusivity agreement by jacking up the monthly service charge for the phone.

I don't think the amount AT&T paid for the iPhone has ever been disclosed, but estimates are in the tens of billions range.

Without the monthly data plan requirement for the iPhone, AT&T would have lost money on the deal.

Nov 4, 2011, 2:07 PM
Most likely VZW will buy USC in a couple of years.
As well it will keep the playing field fair after the AT&T and T-Mobile deal goes through.

Nov 4, 2011, 2:12 PM
There is too much overlapping territory; I don't think a VZW/USCC purchase would ever be approved.

Nov 4, 2011, 2:20 PM
lhafford said:
There is too much overlapping territory; I don't think a VZW/USCC purchase would ever be approved.

That's right. I forgot about that. Either way I think US Cellular will have to merge with someone to stay alive. It's getting fierce out there! lol
T Bone

Nov 4, 2011, 2:47 PM
A US Cellular/Metro PCS merger would be a very good idea I think....

Nov 4, 2011, 5:17 PM
Me too.
They already piggy back off of Sprint for their extended-home area coverage.
Adding USC into their native footprint is a great idea.

Nov 7, 2011, 1:52 PM
you know i remember " big bad red" passing on the iphone for 4 years for this same reason when i worked there. and didnt decide to get it until " little blue" was killing them with iphone sales even though red had a better network. I now work for usc and i can tell you that although i would love to be able to offer an iphone to customers that think adroid is too technical i dont want my company going under because of apples greed. if they were a too big to fail national company like red and blue, or a dumb company that should have failed years ago like sprint it would be a lot easier to absorb the losses that come from first offering the iphone. the model for offering the iphone is not carrier friendly. the carrier pays up front full retail ...

Nov 7, 2011, 4:50 PM
They have stayed very profitable through smart investments. Also, based off the roaming agreements that USCC has with VZW, it would cost VZW more money to buy them out than what you might think.

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