Exhibit 99.1
Contact: Kenneth R. Meyers, Executive Vice President - Finance, U.S. Cellular
(773) 399- 8900 email: [email protected]
Mark A. Steinkrauss, Vice President, Corporate Relations,
Telephone and Data Systems, Inc. (312) 592-5348
email: [email protected]
FOR RELEASE: IMMEDIATE
STRONG CUSTOMER GROWTH AND DIGITAL MIGRATION WILL REDUCE FOURTH QUARTER
OPERATING CASH FLOW AT USM
December 21, 2000, Chicago, Illinois - United States Cellular Corporation
[AMEX:USM] said today that customer additions continue to exceed plan in the
fourth quarter as they did for the first three quarters of the year. Just last
week the company announced that it had added its three millionth customer just
two years after reaching the two million customer mark. The company now
anticipates that net customer additions for 2000 will be approximately 460,000.
In addition, the company's digital migration is proceeding more rapidly than
anticipated. A large percentage of new customers and many existing customers
have elected digital service. Fully 45% of the company's customer base was
digital as of November 30, 2000.
The company also reported that it has increased spending to support higher
customer service levels at its five customer call centers. The company is
committed to improving customer service to best in class, to ensure that
customer satisfaction will continue to provide U.S. Cellular a competitive edge.
The company anticipates that these results will generate significant revenue
growth in 2001 and beyond. These results will also inevitably reduce operating
cash flow for the current quarter below previous expectations. The company now
projects that it will achieve approximately $550 million of operating cash flow
for the year on service revenues of approximately $1.5 billion.
The company's current expectations for 2001 are as follows:
- Net customer additions of approximately 450,000 to 460,000
- Service revenue of approximately $1.7 billion
- Operating cash flow in a range of $665 million to $675 million
- Capital spending in a range of $425 million to $450 million.
U.S. Cellular will hold a teleconference today, December 21, 2000, at 8:00 a.m.
Chicago time. Interested parties may listen to the call live over the Internet
through TDS's web site listed below, or
http://www.videonewswire.com/TDS/122100/, or connect by telephone at
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800/540-0559 passcode: TDS. The conference call will be archived on the TDS web
site at http://www.teldta.com.
All information set forth in this news release, except historical and factual
information, represents forward-looking statements. This includes all statements
about the company's plans, beliefs, estimates and expectations. These statements
are based on current estimates and projections, which involve certain risks and
uncertainties that could cause actual results to differ materially from those in
the forward-looking statements. Important factors that may affect
forward-looking statements include, but are not limited to: general economic and
business conditions, both nationally and in the regions in which the company
operates; technology changes; competition; changes in business strategy or
development plans; acquisitions/divestitures of properties and/or licenses;
changes in governmental regulations; availability of future financing; and
changes in growth in cellular customers, penetration rates, churn rates and
roaming rates. Investors are encouraged to consider these and other risks and
uncertainties that are discussed in documents filed by USM with the Securities
and Exchange Commission.("SEC"). USM undertakes no obligation to publicly update
any forward-looking statements whether as a result of new information, future
events or otherwise.
Based in Chicago, U.S. Cellular manages and invests in cellular systems
throughout the United States. At September 30, USM managed operational systems
serving 144 markets.
For more information about USM or TDS, visit the web sites at:
TDS: http://www.teldta.com
USM: http://www.uscellular.com
