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U.S. Cellular (USM) Boosts Prepaid Plans with More Data
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United States Cellular Corp. (USM - Free Report) , a subsidiary of Telephone & Data Systems Inc. (TDS - Free Report) , recently announced plans to increase the amount of data available in its existing prepaid plans so as to stay strong and more competitive with a broader prepaid subscriber base. The additions include: the 2GB Simple Connect Prepaid plan for $45 per month that has been raised to 3 GB of high-speed data, and the $60 monthly plan that will offer 6 GB instead of 5 GB. U.S. Cellular further added a 12 GB plan for $75 per month. Moreover, any data plan at $35 per month will include unlimited talking and texting.
Additionally, U.S. Cellular also increased the data pack of its Ready Connect Prepaid plans, which are usually sold through outlets such as Walmart and Dollar General, in a limited-time promotion.
U.S. Cellular claims that their decision to increase the data amount has come out in the optimal time as February and March are assumed to be popular months for prepaid wireless purchases. Hence, the company is expecting more customer addition.
Purpose Behind Add-on Data Packs
U.S. Cellular’s top priority always involves subscriber additions and churn management. The company has taken a number of strategic actions that will likely accelerate growth, thus enhancing its returns. These strategies include the introduction of a new billing system, the continuous rollout of 4G LTE, joint 5G trials with Ericsson (ERIC - Free Report) , enhancement of LTE handsets and the completion of various spectrum transactions. The company is also focused on improving cost and profitability by managing data delivery cost and has introduced equipment installment plans. Given these positives, the company has witnessed substantial branding power, resulting in an improvement in churn rate.
We believe that an addition to the amount of data in plans is one such move. Moreover, the prepaid segment is getting competitive by the day with the entry of some big players such as Verizon Communications which has already started selling prepaid services through some exclusive dealers. Moreover, AT&T Inc. (T - Free Report) increased its monthly data allotment in its prepaid brand and will give away free LTE phones to users who switch from other services.
Price Performance
Shares of U.S. Cellular have outperformed the Zacks categorized Wireless National industry’s growth over the past three months. The stock returned 29.04%, beating the industry’s gain of 12.08% over the same span.
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U.S. Cellular (USM) Boosts Prepaid Plans with More Data
United States Cellular Corp. (USM - Free Report) , a subsidiary of Telephone & Data Systems Inc. (TDS - Free Report) , recently announced plans to increase the amount of data available in its existing prepaid plans so as to stay strong and more competitive with a broader prepaid subscriber base. The additions include: the 2GB Simple Connect Prepaid plan for $45 per month that has been raised to 3 GB of high-speed data, and the $60 monthly plan that will offer 6 GB instead of 5 GB. U.S. Cellular further added a 12 GB plan for $75 per month. Moreover, any data plan at $35 per month will include unlimited talking and texting.
Additionally, U.S. Cellular also increased the data pack of its Ready Connect Prepaid plans, which are usually sold through outlets such as Walmart and Dollar General, in a limited-time promotion.
U.S. Cellular claims that their decision to increase the data amount has come out in the optimal time as February and March are assumed to be popular months for prepaid wireless purchases. Hence, the company is expecting more customer addition.
Purpose Behind Add-on Data Packs
U.S. Cellular’s top priority always involves subscriber additions and churn management. The company has taken a number of strategic actions that will likely accelerate growth, thus enhancing its returns. These strategies include the introduction of a new billing system, the continuous rollout of 4G LTE, joint 5G trials with Ericsson (ERIC - Free Report) , enhancement of LTE handsets and the completion of various spectrum transactions. The company is also focused on improving cost and profitability by managing data delivery cost and has introduced equipment installment plans. Given these positives, the company has witnessed substantial branding power, resulting in an improvement in churn rate.
We believe that an addition to the amount of data in plans is one such move. Moreover, the prepaid segment is getting competitive by the day with the entry of some big players such as Verizon Communications which has already started selling prepaid services through some exclusive dealers. Moreover, AT&T Inc. (T - Free Report) increased its monthly data allotment in its prepaid brand and will give away free LTE phones to users who switch from other services.
Price Performance
Shares of U.S. Cellular have outperformed the Zacks categorized Wireless National industry’s growth over the past three months. The stock returned 29.04%, beating the industry’s gain of 12.08% over the same span.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>