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Replying to:  US CELLULAR CEO SAYS "NO" TO IPHONE 4 or 4S by carthian   Nov 3, 2011, 1:04 AM

Re: US CELLULAR CEO SAYS "NO" TO IPHONE 4 or 4S

by erikpkp    Nov 5, 2011, 9:38 AM

I to work for the company and I agree that the iPhone is a great product. However there are many comparable phones that do the same and if not more than apples product. I've used an iPhone, a blackberry and currently use an Android. I'm actually the most happiest with my current product and my better half has an iPhone and hates it with a passion.

Apple will have its followers but Android has the largest market share of any OS platformed phone. OK so the 4S has a "voice application" that sets it apart from others (btw there was an outage for that service already)...big deal. Its not that as a company we could not afford to purchase the product like others said it was the fact that it would have been a large chunk of money allocated to one phone. VZW/AT&T/Sprint have a much larger customer base...there for more incoming revenue to allow them to reallocate to purchase more product.

As for former Cellular South, with a customer base of less than 800,000 would need/have to purchase much less than any other of the current carriers offering the iPhone.

Rough math...Sprint purchased 30.5 million iphones in a 15.5 billion dollar deal, roughly $508 per unit. Thats 2 units per each sprint customer right now.

Using that same math thats 1.6 million units for C-Spire...$813,120,000, thats over 1/2 of thier ANNUAL earnings.

USCC with roughly 6 mil customers would need 12 million units, thats just over 6 billion dollars. When right now we had a 3rd quarter of 1.1 billion in revenue.

Hesse said that the cost of the iPhone would put sprint in further in the red until the 2015 physical year. Thats 4 years of losing money.

In order for USCC to get the iPhone we would have to commit 1.5 years of (total) profit to pay for the units. At the same time putting us in the same boat as Sprint.

Keep in mind that AT&T and VZW have land based services that can back up the wireless side if need be and I believe (could be wrong) that LG also owns a large share of VZW. So Sprint, C-Spire have taken huge risks with thier money and growth. USCC wasn't willing to accept the risk at this moment.

Sorry that was long winded but hoped it made sense.

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