I would like to get others opinions on a buyout/merger possibility with this company. It seems to have spiraled downward hard since the last earnings report (loss of 20%). Customers have not been added in 2 years? It seems like employees are getting paid less (at least according to this forum). Limited devices/no Iphone. I do understand the company takes great strides to achieve good customer service, but the results don't seem to be there. Or am I wrong?
Looking at some of the previous buyouts att/cingular....alltel/verizon....sprint/next el what do you all think will happen?
Personally, I think it is extremely undervalued from its current share price.
Responses welcome.....
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Many have said "buyout/merger" for years and it just doesn't happen. At a time in the mid 2000s when companies were getting bought out left and right, US Cellular remained. However, now they've pigeonholed themselves. They aren't of any significant value now to be taken over. Maybe Sprint or Metro PCS might find some use, but the big guys don't need them. USCC might be more open to a buyout now due to losing customers. The company is showing signs of something coming down the line. Cutting commissions (to have more operating revenue?), firing or running out tenured employees (to not pay severance packages?), being numbers driven at work (to have good operating metrics for a potential buyer?). The company is acting desperate in demand...
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I would agree. I am one of those tenured reps you are talking about being ran out of the company. I would have been there for 6 years this month which doesn't seem very tenured but in the world of USCC, 6 yrs is a tenured rep as turnover is 1-2 years (Hence why they give you another full week of vacation after hitting your 3 yr mark).
I worked at USCC for my last two years back in college thru graduation and gave them everything I had yet never really given a chance to move up or do anything more. I enjoyed sales (and the commission) so I stayed for another 3 yrs before deciding to go back to my family company to really make a difference and actually make some real money and I am very happy I did.
I hold USCC responsible for its o...
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I would welcome a AT$T purchase of USCC.
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Would never work. AT&T uses GSM, the world standard in cellular technology, whereas USCC uses CDMA, an American standard, that's totally incompatible. They are compatible with Verizon on a couple of bandwiths, but overall not even compatible with them enough to consider a merger. The other big CDMA carrier, Sprint, runs only one bandwith, 1900 MHZ PCS so they're out of the running.
USCC's best option for a buyout is to invest in building out their LTE network at 700 MHZ where they will then be compatible with other CDMA LTE networks. Even then they wouldn't be attractive to Verizon as they have overlapping markets. But Sprint, which invested in WiMax and is behind every other carrier in the LTE race would be interested. It would b...
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Which I would like to add that just because CDMA is an American standard, it doesn't mean it's better. GSM is better in the fact that they use SIM cards and carriers don't lock down their phones via firmware that are virtually impossible to unlock, which means you can't take your phone to a different carrier. Qualcomm got their scam going in the US, but the rest of the world didn't buy into their BS. Now that said, ATT has the $ to easily buyout USCC. Their breakup fee with T-Mobile was more than USCC's total market value. Could ATT convert USCC to GSM? You bet. It might cost another 5 billion, but they could do it. If they did, they would have a much better reach in the rural markets. USCC's niche is coverage in rural areas, so if ...
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I'm not sure i agree completely with your assessment of US Cellular's Troubles. Obviously they are loosing postpaid customers, per their financials, but they have seen revenue increasing the past two quarters compared to a year ago, and their ARPU increased sharply over the past 5 reported quarters. It seems to me that many of the changes often criticized (increased sales pressure, commissions restructure, etc) would logically translate into flat to modest growth on the balance sheet even while loosing customers. Thus, bad for retail wireless consultants, but good for the company.
Device limitations are certainly there, but on the iPhone topic, USC and parent TDS have been very transparent about pricing concerns, and technology limita...
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Outstanding response. Educated and well written. Kudos to you.
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Someone please rip apart this thinking for calculating what USCC is worth in terms of market cap when compared to the recent Tmobile/Metro PCS buyout/merger.
Metro PCS shareholders receive 26% of Tmobile and 1.5 billion cash.
Tmobile valued at 39 billion from att purchase offer that fell through.
39 billion X 26% = 10.15 billion + 1.5 billion cash= 11.65 billion. This is essentially the price or value what Metro PCS is worth in the merger between companies
Metro PCS has 9.3 million customers. Making each customer worth $1250
USCC has 5.5 million customers? = market cap of 6.875 billion or approximatley $75 per share. (currently at $37)
I realize this is very vague, but want to know if there is any logic to this thinking. I...
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