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U.S. Cellular (USM) Poised to Grow on 5G Network Strategy

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United States Cellular Corporation (USM - Free Report) recently purchased 254 licenses for an estimated amount of $1.46 billion in the Federal Communications Commission C-Band Auction 107.

The Chicago, IL-based wireless carrier will have a mid-band spectrum in almost all of its operating markets when combined with prior mid-band purchases of CBRS spectrum in Auction 105.

U.S. Cellular is deploying 5G on 600 MHz spectrum and plans to expand it with mid- and high- band spectrum. It has acquired 60 MHz in the majority of its markets, including Wisconsin and Iowa.

The company is providing exceptional customer service while ramping up business opportunities that use 5G and IoT. It is conducting customer pilots using millimeter wave spectrum for a high-speed Internet product to test the market demand. It is working on bridging the digital divide so that people have access to high-quality and affordable broadband services.

U.S. Cellular is the fourth largest full-service wireless carrier in the United States. It provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve efficiency of government operations.

The company continues to expand its 5G device offering for consumers and businesses. It is well positioned to support the investment required for network enhancements, including the deployment of 5G. U.S. Cellular continues its network modernization program, adding capacity and speed while launching 5G services commercially and VoLTE in the remaining markets.

U.S. Cellular is on a multi-year path to bring 5G to as many customers as possible, with new markets on the horizon. Its 5G network covers certain areas of California, Illinois, Iowa, Maine, Maryland, Missouri, Nebraska, New Hampshire, North Carolina, Oklahoma, Oregon, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin.

U.S. Cellular has been expanding its footprint while adopting unlimited plans to enhance average revenue per user. It has made progress on strategic objectives, growing customer base by increasing handset connections and customer loyalty to boost revenues and profitability. The company is working toward long-term growth and sustainability.

Shares of U.S. Cellular have gained 12.4% in the past six months against 0.9% decline of the industry. The company delivered a trailing four-quarter earnings surprise of 136.1%, on average.




The stock currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Aviat Networks (AVNW - Free Report) , Plantronics and Ubiquiti (UI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aviat Networks delivered a trailing four-quarter earnings surprise of 61.7%, on average.

Plantronics delivered a trailing four-quarter earnings surprise of 560.4%, on average.    

Ubiquiti delivered a trailing four-quarter earnings surprise of 37.1%, on average.

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