false--12-31FY201900008211306600000070000000200000010000001.0011.0011900000005000000014000000019000000050000000140000000880000003300000055000000880000003300000055000000860000003300000053000000860000003300000053000000330000005500000033000000550000000.0030.017511000000110000000100000010000000P5YP5YP7YP25YP8YP3YP3YP1YP7YP5Y850000008600000082000000P1YP1Y10000000100000002000000200000003.253.00P12Y001300000 0000821130 2019-01-01 2019-12-31 0000821130 2019-06-28 0000821130 us-gaap:CommonClassBMember 2020-01-31 0000821130 us-gaap:CommonClassAMember 2020-01-31 0000821130 us-gaap:CommonClassBMember 2019-01-01 2019-12-31 0000821130 usm:SevenPointTwoFivePercent2064SeniorNotesMember 2019-01-01 2019-12-31 0000821130 usm:SevenPointTwoFivePercent2063SeniorNotesMember 2019-01-01 2019-12-31 0000821130 usm:SixPointNineFivePercentSeniorNotesMember 2019-01-01 2019-12-31 0000821130 2017-01-01 2017-12-31 0000821130 us-gaap:ServiceMember 2019-01-01 2019-12-31 0000821130 2018-01-01 2018-12-31 0000821130 us-gaap:ServiceMember 2017-01-01 2017-12-31 0000821130 us-gaap:ProductMember 2019-01-01 2019-12-31 0000821130 us-gaap:ProductMember 2018-01-01 2018-12-31 0000821130 us-gaap:ProductMember 2017-01-01 2017-12-31 0000821130 us-gaap:ServiceMember 2018-01-01 2018-12-31 0000821130 2019-12-31 0000821130 2018-12-31 0000821130 2017-12-31 0000821130 2016-12-31 0000821130 us-gaap:CommonClassBMember 2018-12-31 0000821130 us-gaap:CommonClassAMember 2019-12-31 0000821130 us-gaap:CommonClassBMember 2019-12-31 0000821130 us-gaap:CommonClassAMember 2018-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2017-01-01 2017-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2016-12-31 0000821130 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0000821130 us-gaap:ParentMember 2017-01-01 2017-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000821130 us-gaap:CommonStockMember 2017-12-31 0000821130 us-gaap:TreasuryStockMember 2017-12-31 0000821130 us-gaap:TreasuryStockMember 2016-12-31 0000821130 us-gaap:ParentMember 2016-12-31 0000821130 us-gaap:RetainedEarningsMember 2016-12-31 0000821130 us-gaap:RetainedEarningsMember 2017-12-31 0000821130 us-gaap:ParentMember 2017-12-31 0000821130 us-gaap:CommonStockMember 2016-12-31 0000821130 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2017-12-31 0000821130 us-gaap:ParentMember 2019-01-01 2019-12-31 0000821130 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0000821130 us-gaap:TreasuryStockMember 2019-01-01 2019-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2019-12-31 0000821130 us-gaap:RetainedEarningsMember 2018-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-12-31 0000821130 us-gaap:TreasuryStockMember 2018-12-31 0000821130 us-gaap:CommonStockMember 2018-12-31 0000821130 us-gaap:ParentMember 2018-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000821130 us-gaap:RetainedEarningsMember 2019-12-31 0000821130 us-gaap:CommonStockMember 2019-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2018-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000821130 us-gaap:ParentMember 2019-12-31 0000821130 us-gaap:TreasuryStockMember 2019-12-31 0000821130 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0000821130 us-gaap:ParentMember 2018-01-01 2018-12-31 0000821130 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0000821130 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-12-31 0000821130 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0000821130 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-12-31 0000821130 us-gaap:LicensingAgreementsMember 2019-01-01 2019-12-31 0000821130 srt:AffiliatedEntityMember 2019-12-31 0000821130 srt:MaximumMember us-gaap:LeaseholdImprovementsMember 2019-01-01 2019-12-31 0000821130 usm:RetirementSavings401kPlanMember 2018-01-01 2018-12-31 0000821130 srt:MaximumMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember us-gaap:LeaseholdImprovementsMember 2019-01-01 2019-12-31 0000821130 usm:RetirementSavings401kPlanMember 2019-01-01 2019-12-31 0000821130 usm:RetirementSavings401kPlanMember 2017-01-01 2017-12-31 0000821130 usm:TelephoneandDataSystemsInc.Member usm:UnitedStatesCellularCorporationMember 2019-12-31 0000821130 srt:AffiliatedEntityMember 2018-12-31 0000821130 srt:MinimumMember 2019-01-01 2019-12-31 0000821130 us-gaap:LicensingAgreementsMember 2018-01-01 2018-12-31 0000821130 us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0000821130 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0000821130 us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000821130 usm:EquipmentAndProductSalesMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-12-31 0000821130 us-gaap:TransferredOverTimeMember 2019-01-01 2019-12-31 0000821130 usm:RetailServiceRevenueMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-12-31 0000821130 usm:RetailServiceRevenueMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000821130 usm:OtherServiceRevenueMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-12-31 0000821130 usm:InboundRoamingRevenueMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000821130 usm:EquipmentAndProductSalesMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000821130 usm:InboundRoamingRevenueMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-12-31 0000821130 usm:OtherServiceRevenueMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000821130 2019-01-01 2019-01-01 0000821130 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-01-01 0000821130 2021-01-01 2019-12-31 0000821130 2020-01-01 2019-12-31 0000821130 2022-01-01 2019-12-31 0000821130 usm:SevenPointTwoFivePercent2064SeniorNotesMember 2019-12-31 0000821130 usm:SixPointSevenPercentSeniorNotesMember 2019-12-31 0000821130 usm:SixPointNineFivePercentSeniorNotesMember 2019-12-31 0000821130 srt:MaximumMember usm:InstitutionalAndOtherDebtMember usm:InterestRateOrEstablishedYieldToMaturityMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember usm:InstitutionalAndOtherDebtMember usm:InterestRateOrEstablishedYieldToMaturityMember 2018-01-01 2018-12-31 0000821130 usm:SevenPointTwoFivePercent2063SeniorNotesMember 2019-12-31 0000821130 srt:MinimumMember usm:InstitutionalAndOtherDebtMember usm:InterestRateOrEstablishedYieldToMaturityMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:InstitutionalAndOtherDebtMember usm:InterestRateOrEstablishedYieldToMaturityMember 2018-01-01 2018-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:PublicDebtMember 2018-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:NonPublicDebtMember 2019-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:PublicDebtMember 2019-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:NonPublicDebtMember 2019-12-31 0000821130 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:OtherDebtMember 2019-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:PublicDebtMember 2018-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000821130 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:OtherDebtMember 2018-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:OtherDebtMember 2019-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:OtherDebtMember 2018-12-31 0000821130 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember usm:NonPublicDebtMember 2018-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:PublicDebtMember 2019-12-31 0000821130 us-gaap:CarryingReportedAmountFairValueDisclosureMember usm:NonPublicDebtMember 2018-12-31 0000821130 us-gaap:UnbilledRevenuesMember us-gaap:PrimeMember 2019-12-31 0000821130 us-gaap:BilledRevenuesMember us-gaap:PrimeMember 2018-12-31 0000821130 us-gaap:BilledRevenuesMember us-gaap:SubprimeMember 2019-12-31 0000821130 us-gaap:UnbilledRevenuesMember us-gaap:SubprimeMember 2019-12-31 0000821130 us-gaap:BilledRevenuesMember us-gaap:SubprimeMember 2018-12-31 0000821130 us-gaap:UnbilledRevenuesMember 2019-12-31 0000821130 us-gaap:UnbilledRevenuesMember 2018-12-31 0000821130 us-gaap:BilledRevenuesMember 2018-12-31 0000821130 us-gaap:BilledRevenuesMember us-gaap:PrimeMember 2019-12-31 0000821130 us-gaap:SubprimeMember 2019-12-31 0000821130 us-gaap:PrimeMember 2018-12-31 0000821130 us-gaap:SubprimeMember 2018-12-31 0000821130 us-gaap:UnbilledRevenuesMember us-gaap:PrimeMember 2018-12-31 0000821130 us-gaap:BilledRevenuesMember 2019-12-31 0000821130 us-gaap:PrimeMember 2019-12-31 0000821130 us-gaap:UnbilledRevenuesMember us-gaap:SubprimeMember 2018-12-31 0000821130 usm:EquipmentInstallmentPlanReceivableMember 2017-12-31 0000821130 usm:EquipmentInstallmentPlanReceivableMember 2018-12-31 0000821130 usm:EquipmentInstallmentPlanReceivableMember 2018-01-01 2018-12-31 0000821130 usm:EquipmentInstallmentPlanReceivableMember 2019-01-01 2019-12-31 0000821130 usm:EquipmentInstallmentPlanReceivableMember 2019-12-31 0000821130 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0000821130 us-gaap:AccountsReceivableMember 2018-12-31 0000821130 us-gaap:AccountsReceivableMember 2019-12-31 0000821130 us-gaap:OtherNoncurrentAssetsMember 2019-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-01-01 2018-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-01-01 2017-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2019-01-01 2019-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2016-12-31 0000821130 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2019-12-31 0000821130 us-gaap:StateAndLocalJurisdictionMember 2018-12-31 0000821130 us-gaap:StateAndLocalJurisdictionMember 2019-12-31 0000821130 us-gaap:InternalRevenueServiceIRSMember 2018-12-31 0000821130 us-gaap:InternalRevenueServiceIRSMember 2019-12-31 0000821130 srt:MaximumMember 2018-01-01 2018-12-31 0000821130 usm:TowerLeasesMember 2019-01-01 2019-12-31 0000821130 usm:KingStreetWirelessOutOfPeriodAdjustmentMemberMember 2018-01-01 2018-12-31 0000821130 usm:Auction102AcquisitionEventMember 2019-12-31 0000821130 usm:Auction101AcquisitionEventMember 2019-12-31 0000821130 us-gaap:LicensingAgreementsMember 2019-12-31 0000821130 us-gaap:LicensingAgreementsMember 2018-12-31 0000821130 us-gaap:LicensingAgreementsMember 2017-12-31 0000821130 us-gaap:BuildingMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember us-gaap:OtherMachineryAndEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember us-gaap:FurnitureAndFixturesMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember us-gaap:FurnitureAndFixturesMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:SwitchingEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember usm:CellSiteEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember us-gaap:TechnologyEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember usm:SwitchingEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember us-gaap:OtherMachineryAndEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:CellSiteEquipmentMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember us-gaap:TechnologyEquipmentMember 2019-01-01 2019-12-31 0000821130 2019-01-01 0000821130 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000821130 usm:FinanceLeasesMember 2019-12-31 0000821130 usm:OtherServiceRevenueMember usm:TowerLeasesMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-01-01 0000821130 usm:TermLoanFacilityMember 2019-12-31 0000821130 usm:SixPointNineFivePercentSeniorNotesMember 2018-12-31 0000821130 usm:InstallmentPaymentAgreementMember 2018-12-31 0000821130 usm:SixPointSevenPercentSeniorNotesMember 2018-12-31 0000821130 usm:SevenPointTwoFivePercent2063SeniorNotesMember 2018-12-31 0000821130 usm:LongTermDebtCapitalLeaseObligationsMember 2019-12-31 0000821130 usm:InstallmentPaymentAgreementMember 2019-12-31 0000821130 usm:SevenPointTwoFivePercent2064SeniorNotesMember 2018-12-31 0000821130 usm:LongTermDebtCapitalLeaseObligationsMember 2018-12-31 0000821130 usm:TermLoanFacilityMember 2018-12-31 0000821130 usm:RevolvingCreditFacilityAMember 2019-12-31 0000821130 srt:MaximumMember 2019-12-31 0000821130 usm:CallableNotesMember 2019-01-01 2019-12-31 0000821130 usm:RevolvingCreditFacilityAMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0000821130 usm:ReceivablesSecuritizationFacilityMember 2019-12-31 0000821130 usm:ReceivablesSecuritizationFacilityMember 2018-01-01 2018-12-31 0000821130 usm:ReceivablesSecuritizationFacilityMember 2017-01-01 2017-12-31 0000821130 usm:SixPointSevenPercentSeniorNotesMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:SubordinatedAgreementMember 2019-12-31 0000821130 usm:RevolvingCreditFacilityAMember 2019-01-01 2019-12-31 0000821130 usm:RevolvingCreditFacilityAMember us-gaap:BaseRateMember 2019-01-01 2019-12-31 0000821130 usm:TermLoanFacilityMember 2019-10-31 2019-10-31 0000821130 usm:ReceivablesSecuritizationFacilityMember 2019-01-01 2019-12-31 0000821130 usm:SubordinatedAgreementMember usm:TermLoanFacilityMember 2019-12-31 0000821130 usm:TermLoanFacilityMember 2015-07-31 0000821130 usm:ReceivablesSecuritizationFacilityMember 2017-12-31 0000821130 usm:SixPointSevenPercentSeniorNotesMember usm:TreasuryRateMember 2019-01-01 2019-12-31 0000821130 usm:TermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0000821130 usm:RevolvingCreditFacilityAMember 2019-07-01 0000821130 usm:RevolvingCreditFacilityAMember 2017-01-01 2017-12-31 0000821130 usm:RevolvingCreditFacilityAMember usm:SubordinatedAgreementMember 2019-12-31 0000821130 usm:RevolvingCreditFacilityAMember 2019-06-30 0000821130 usm:RevolvingCreditFacilityAMember 2018-01-01 2018-12-31 0000821130 us-gaap:SubsequentEventMember 2020-02-25 0000821130 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember 2019-12-31 0000821130 usm:NetincomeattributabletoU.S.CellularshareholdersMember usm:KingStreetWirelessOutOfPeriodAdjustmentMemberMember 2018-01-01 2018-12-31 0000821130 us-gaap:VariableInterestEntityNotPrimaryBeneficiaryAggregatedDisclosureMember 2018-12-31 0000821130 usm:VariableInterestEntityUsccEipLlcMember 2018-01-01 2018-12-31 0000821130 usm:VariableInterestEntityUsccEipLlcMember 2017-01-01 2017-12-31 0000821130 usm:VariableInterestEntityUsccEipLlcMember 2019-01-01 2019-12-31 0000821130 usm:NetIncomeAttributableToNoncontrollingInterestsNetTaxMember usm:KingStreetWirelessOutOfPeriodAdjustmentMemberMember 2018-01-01 2018-12-31 0000821130 us-gaap:VariableInterestEntityPrimaryBeneficiaryAggregatedDisclosureMember 2019-12-31 0000821130 us-gaap:VariableInterestEntityPrimaryBeneficiaryAggregatedDisclosureMember 2018-12-31 0000821130 srt:MaximumMember us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2009-11-01 2009-11-30 0000821130 srt:MinimumMember us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2017-01-01 2017-01-01 0000821130 us-gaap:CommonClassAMember 2019-01-01 2019-12-31 0000821130 usm:RetirementSavings401kPlanMember us-gaap:CommonClassBMember 2019-12-31 0000821130 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2019-12-31 0000821130 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2019-01-01 2019-12-31 0000821130 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0000821130 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0000821130 srt:MaximumMember us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2017-01-01 2017-01-01 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 usm:NonEmployeeDirectorPlanMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:RestrictedStockUnitsRSUMember 2017-01-01 2017-12-31 0000821130 usm:NonEmployeeDirectorPlanMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:PerformanceSharesMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:EmployeeStockOptionMember 2017-01-01 2017-12-31 0000821130 usm:NonEmployeeDirectorPlanMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember usm:RetiredEmployeesMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0000821130 srt:MinimumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-12-31 0000821130 srt:MaximumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember usm:USCellularSegmentMember us-gaap:CommonClassBMember 2019-12-31 0000821130 usm:NonEmployeeDirectorPlanMember usm:USCellularSegmentMember us-gaap:CommonClassBMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 usm:NonEmployeeDirectorPlanMember usm:USCellularSegmentMember us-gaap:CommonClassBMember 2018-01-01 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0000821130 srt:MaximumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2019-01-01 2019-12-31 0000821130 usm:TerminatedEmployeesMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:RestrictedStockUnitsRSUMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2017-01-01 2017-12-31 0000821130 usm:NonEmployeeDirectorPlanMember usm:USCellularSegmentMember us-gaap:CommonClassBMember 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-12-31 0000821130 srt:MaximumMember usm:RetiredEmployeesMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0000821130 usm:NonEmployeeDirectorPlanMember usm:USCellularSegmentMember us-gaap:CommonClassBMember 2017-01-01 2017-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:PerformanceSharesMember 2018-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2019-12-31 0000821130 usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:EmployeeStockOptionMember 2018-12-31 0000821130 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-12-31 0000821130 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-12-31 0000821130 us-gaap:GeneralAndAdministrativeExpenseMember 2017-01-01 2017-12-31 0000821130 usm:CostOfServicesMember 2018-01-01 2018-12-31 0000821130 usm:CostOfServicesMember 2017-01-01 2017-12-31 0000821130 usm:CostOfServicesMember 2019-01-01 2019-12-31 0000821130 srt:MaximumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-12-31 0000821130 srt:MaximumMember usm:StockCompensationPlanDMember us-gaap:CommonClassBMember us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-01-01 2017-12-31 0000821130 us-gaap:CommonClassBMember 2017-01-01 2017-12-31 0000821130 us-gaap:CommonClassBMember 2018-01-01 2018-12-31 0000821130 usm:TelephoneandDataSystemsInc.Member usm:UnitedStatesCellularCorporationMember srt:MinimumMember 1988-05-04 0000821130 usm:SidleyAustinLlpMember 2017-01-01 2017-12-31 0000821130 usm:SidleyAustinLlpMember 2018-01-01 2018-12-31 0000821130 srt:AffiliatedEntityMember 2018-01-01 2018-12-31 0000821130 usm:SidleyAustinLlpMember 2019-01-01 2019-12-31 0000821130 srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0000821130 srt:AffiliatedEntityMember 2017-01-01 2017-12-31 xbrli:shares usm:segment usm:connection iso4217:USD iso4217:USD xbrli:shares xbrli:pure usm:unit usm:asset_group usm:vote usm:license

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

For the fiscal year ended December 31, 2019

OR

Commission file number 001-09712

 

As of June 28, 2019, the aggregate market value of the registrant's Common Shares held by non-affiliates was approximately $703 million, based upon the closing price of the Common Shares on June 28, 2019, of $44.67, as reported by the New York Stock Exchange. For purposes hereof, it was assumed that each director, executive officer and holder of 10% or more of any class of voting equity security of U.S. Cellular is an affiliate.

The number of shares outstanding of each of the registrant's classes of common stock, as of January 31, 2020, is 53,142,600 Common Shares, $1 par value, and 33,005,900 Series A Common Shares, $1 par value.

DOCUMENTS INCORPORATED BY REFERENCE

Those sections or portions of the registrant's 2019 Annual Report to Shareholders (Annual Report), filed as Exhibit 13 hereto, and of the registrant’s Notice of Annual Meeting of Shareholders and Proxy Statement (Proxy Statement) to be filed prior to April 30, 2020, for the 2020 Annual Meeting of Shareholders scheduled to be held May 19, 2020, are herein incorporated by reference into Parts II and III of this report.

United States Cellular Corporation

Annual Report on Form 10-K

For the Period Ended December 31, 2019

TABLE OF CONTENTS

 

PART I

Item 1. Business

General

United States Cellular Corporation (U.S. Cellular) provides wireless telecommunications services to customers with 4.9 million connections in 20 states collectively representing a total population of 31 million. U.S. Cellular operates in one reportable segment, and all of its wireless operating markets are in the United States.

The map below highlights areas of operation of U.S. Cellular’s consolidated operating markets.

Customers, Services and Products

Customers. U.S. Cellular provides service to postpaid and prepaid customers from a variety of demographic segments. U.S. Cellular focuses on retail consumers, government entities, and business customers located in its service territories. These customers are served primarily through U.S. Cellular’s retail and direct sales channels. U.S. Cellular builds customer loyalty by offering high-quality network services, outstanding customer-focused support services, competitive pricing, and other benefits as discussed further in “Marketing, Customer Service, and Sales and Distribution Channels” below.

Services. U.S. Cellular’s customers are able to choose from a variety of national plans with voice, messaging and data usage options and pricing that are designed to fit different customer needs, usage patterns and budgets. Helping a customer find the right plan is an important element of U.S. Cellular’s brand positioning. U.S. Cellular’s national plans price all domestic calls as local calls, regardless of where they are made or received in the United States, with no long distance or roaming charges, made possible by roaming agreements with other wireless carriers. See “Network Technology, Roaming, and System Design” section below for further discussion related to roaming.

U.S. Cellular offers advanced wireless solutions to consumers and business and government customers, including a growing suite of connected machine-to-machine (M2M) solutions and software applications across the categories of monitor and control (e.g., sensors and cameras), business automation/operations (e.g., e-forms), communication (e.g., enterprise messaging, back-up router for business continuity services) and asset management (e.g., navigation system, fleet management). U.S. Cellular intends to continue to further enhance these offerings for customers in 2020 and beyond.

Devices and Products. U.S. Cellular offers a comprehensive range of wireless devices such as handsets, tablets, mobile hotspots, home phones and routers for use by its customers. U.S. Cellular offers wireless devices that are compatible with its 4G LTE and third generation (3G) networks and are compliant with the Federal Communications Commission (FCC) enhanced wireless 911 requirements. In addition, U.S. Cellular also offers a wide range of accessories, including wireless essentials such as cases, screen protectors, chargers, and memory cards as well as an assortment of consumer electronics such as headphones, smart speakers, wearables and home automation products (e.g., cameras, sensors, and thermostats).

New postpaid handset sales to retail consumers are made primarily under equipment installment plans (EIP); business and government customers may continue to purchase equipment under alternative plans subject to a service contract. For certain installment plans, after a specified period of time or number of payments, the customer may have the right to upgrade to a new device prior to reaching the end of the installment term, thus enabling customers to access the latest smartphones and provide a better overall customer experience.

U.S. Cellular also offers accessories for purchase on installment plans. These plans allow new and existing postpaid customers to purchase certain accessories payable over a specified time period.

U.S. Cellular offers its Device Protection+ program, which includes overnight delivery of a replacement device for damaged, lost and stolen devices, and AppleCare services for Apple iOS customers. Its Device Protection+ Advanced program also includes local or on-demand repair for eligible devices. In addition, U.S. Cellular offers a Trade-In program through which U.S. Cellular buys customers' used equipment.

U.S. Cellular offers a full array of iconic smartphones with options for both Android and iOS customers. U.S. Cellular continues to bolster its expanding smartphone portfolio with the Samsung Galaxy S® 10e and Note10/Note10+, the iPhone® 11/11 Pro/11 Pro Max, the Google Pixel 4, and the Motorola Moto e6. Along with the iconic devices, U.S. Cellular supports the larger ecosystem of Samsung and Apple devices, such as the Samsung Galaxy Watch, the Samsung Gear Sport and the Apple Watch Series 5. For tablets, U.S. Cellular offers the full complement of iPads and the Samsung Galaxy Tab series. U.S. Cellular’s smartphone offerings play a significant role in attracting customers and driving data service usage and revenues. U.S. Cellular also offers additional services and products that utilize U.S. Cellular's network, including feature phones, mobile hotspots, LTE home internet, LTE wireless routers, LTE wireless cameras, and home phones.

U.S. Cellular purchases wireless devices and accessory products from a number of original equipment manufacturers and distributors, including Samsung, Apple, Google, Motorola, LG, Inseego, Tessco, Voicecomm and Superior. U.S. Cellular manages relationships with its suppliers to ensure best possible pricing and identifies opportunities for promotional support. U.S. Cellular does not own significant product warehousing and distribution infrastructure; rather, it contracts with third party providers for the majority of its product warehousing, distribution and direct customer fulfillment activities. U.S. Cellular also contracts with third party providers for services related to its device service programs.

U.S. Cellular continuously monitors the financial condition of its wireless device and accessory suppliers. Since U.S. Cellular has a diversified portfolio of products from more than one supplier, U.S. Cellular does not expect the financial condition of any single supplier to affect its ability to offer a competitive portfolio of wireless devices and accessories for sale to customers.

Marketing, Customer Service, and Sales and Distribution Channels

Marketing and Advertising. U.S. Cellular’s marketing plan is focused on acquiring, retaining and enhancing customer relationships by maintaining a high-quality wireless network, providing outstanding customer service, and offering a comprehensive portfolio of services and products built around customer needs at fair prices with a local focus. U.S. Cellular believes that creating positive relationships with its customers enhances their wireless experience and builds customer loyalty. In 2019, U.S. Cellular completed a brand refresh centered around its brand promise of doing what is right for customers, which is expressed through a new marketing campaign, 'Bringing Fairness to Wireless'. U.S. Cellular also introduced new Basic, Everyday and Even Better Unlimited plans. These plans allow customers to choose and customize plans to match their needs and lifestyles.

To attract new customers and retain existing customers, and increase their usage of U.S. Cellular’s services, U.S. Cellular’s advertising is directed at increasing the public awareness of the U.S. Cellular brand, knowledge of the outstanding network that works in places where other carriers do not have coverage, and understanding of the wireless services it offers. U.S. Cellular supplements its advertising with a focused public relations program that seeks to improve overall brand sentiment and awareness, encourages engagement, supports sales of services and products, and builds preference and loyalty for the U.S. Cellular brand. The approach combines national and local media relations in mainstream and social media channels with market-specific activities, events, and sponsorships.

U.S Cellular focuses its philanthropic and volunteer activities on K-12 STEM (Science, Technology, Engineering and Math) for youth in the communities U.S. Cellular serves. U.S Cellular also collaborates with organizations such as the Boys & Girls Clubs of America and JASON Learning. Since 2015, U.S. Cellular's The Future of Good program has demonstrated the commitment to fairness by highlighting and supporting young humanitarians that have taken extraordinary actions to make their communities a better place.

Customer Service. U.S. Cellular manages customer retention by focusing on outstanding customer service through the development of processes that are customer-friendly, extensive training of frontline sales and support associates and the implementation of retention programs.

U.S. Cellular operates four regional customer care centers in its operating markets with personnel who are responsible for customer service activities, and a national financial services center with personnel who perform credit and other customer payment activities. U.S. Cellular also contracts with third parties that provide additional customer care and financial services support.

Sales and Distribution Channels. U.S. Cellular supports a multi-faceted distribution program, including retail sales, direct sales, third-party national retailers, and independent agents, plus a website and telesales.

Company retail store locations are designed to market wireless services and products to the consumer and small business segments in a setting familiar to these types of customers. As of December 31, 2019, retail sales associates work in 262 U.S. Cellular-operated retail stores and kiosks. Direct sales representatives sell traditional wireless services as well as Internet of Things (IoT) and M2M products and solutions to medium- and large-sized businesses and government entities. Additionally, the U.S. Cellular website enables customers to purchase wireless services and devices online.

U.S. Cellular maintains an ongoing training program to improve the effectiveness of retail sales associates and direct sales representatives by focusing their efforts on obtaining customers by facilitating the sale of appropriate packages for the customer’s expected usage and value-added services that meet the individual needs of the customer.

U.S. Cellular has relationships with exclusive and non-exclusive agents (collectively “agents”), which are independent businesses that obtain customers for U.S. Cellular on a commission basis. At December 31, 2019, U.S. Cellular had contracts with these businesses aggregating 448 locations. U.S. Cellular provides support and training to its agents to increase customer satisfaction and to ensure a consistent customer experience. U.S. Cellular’s agents are generally in the business of selling wireless devices, wireless service plans and other related products. No single agent accounted for 10% or more of U.S. Cellular’s operating revenues during the past three years.

U.S. Cellular services and products also are offered through third-party national and on-line retailers. Wal-Mart, Sam’s Club, Cashland, Family Dollar and Dollar General offer U.S. Cellular services and products at select retail locations in U.S. Cellular’s service areas. U.S. Cellular continues to explore new relationships with additional third-party retailers as part of its strategy to expand distribution.

Seasonality. Seasonality in operating expenses may cause operating income to vary from quarter to quarter. U.S. Cellular’s operating expenses tend to be higher in the fourth quarter due to increased marketing and promotional activities during the holiday season.

Competition

The wireless telecommunication industry is highly competitive. U.S. Cellular competes directly with several wireless service providers in each of its markets. In general, there are between two and five competitors in each wireless market in which U.S. Cellular provides service, excluding resellers and mobile virtual network operators (MVNOs). In its footprint, U.S. Cellular competes to varying degrees against each of the national wireless companies: Verizon Wireless, AT&T Mobility, Sprint, and T-Mobile USA, in addition to a few smaller regional carriers and cable providers such as Comcast and Charter in specific areas of its footprint. All of the national competitors have substantially greater financial and other resources than U.S. Cellular. In addition, U.S. Cellular competes with other companies that use alternative communication technology and services to provide similar services and products.

Since each of these wireless competitors operates on systems using spectrum licensed by the FCC and has comparable technology and facilities, competition among wireless service providers for customers is principally on the basis of types of services and products, price, size of area covered, network quality, network speed and responsiveness of customer service. Types of services and products include non–wireless related services such as content offerings that are bundled with wireless services. U.S. Cellular employs a customer satisfaction strategy that includes maintaining an outstanding wireless network throughout its markets. U.S. Cellular owns and operates low-band spectrum (less than 1 GHz) that covers the majority of its footprint and enables more efficient coverage in rural areas (compared to spectrum above 1 GHz), which strengthens its network quality positioning. To the extent existing competitors or new entrants hold or acquire such spectrum in U.S. Cellular markets, U.S. Cellular could face increased competition over time. In addition, fifth generation (5G) technology will likely introduce increased competition from industry participants on bases such as network speed and new product offerings.

The use of national advertising and promotional programs by the top four wireless service providers and certain cable providers is a source of additional competitive and pricing pressures in all U.S. Cellular markets, even if those operators do not provide direct service in a particular market. Over the past year, competition among top carriers has continued to be robust, with the top four carriers and certain cable providers offering rich promotions related to both service plans and devices. In addition, in the current wireless environment, U.S. Cellular’s ability to compete depends on its ability to continue to offer national voice and data plans. U.S. Cellular provides wireless services comparable to the national competitors, but the national wireless companies operate in a wider geographic area and are able to provide such services over a wider area on their own networks than U.S. Cellular can offer on its network. Although U.S. Cellular offers similar coverage area as these competitors, U.S. Cellular incurs roaming charges for data sessions and calls made in portions of the coverage area which are not part of its network, thereby increasing its cost of operations. U.S. Cellular depends on roaming agreements with other wireless carriers to provide voice and data roaming capabilities in areas not covered by U.S. Cellular’s network. Similarly, U.S. Cellular provides roaming services on its network to other wireless carriers’ customers who travel within U.S. Cellular’s coverage areas and receives revenue from other carriers for the provision of these services.

Convergence of connectivity is taking place on many levels, including wireless devices that can act as wireless or wireline replacement devices and the incorporation of wireless “hot spot” technology in wireless devices making internet access seamless regardless of location. Although less directly a substitute for other wireless services, wireless data services such as Wi-Fi may be adequate for those who do not need mobile wide-area roaming or full two-way voice services. If the trend toward convergence continues, U.S. Cellular is at a competitive disadvantage to larger competitors, including the national wireless carriers, traditional cable companies, MVNOs and other potential large new entrants with much greater financial and other resources in adapting to such convergence. Cable companies compete in the wireless market; most notably, Comcast and Charter currently offer wireless services.

U.S. Cellular’s approach in 2020 and in future years will be to focus on the unique needs and attitudes of its customers towards wireless service. U.S. Cellular will deliver high-quality services and products at competitive prices and intends to continue to differentiate itself by seeking to provide an overall outstanding customer experience, founded on a high-quality network. U.S. Cellular’s ability to compete successfully in the future will depend upon its ability to anticipate and respond to changes related to new service offerings, consumer preferences, competitors’ pricing strategies and new product offerings, technology, demographic trends, economic conditions and its access to adequate spectrum resources.

Network Technology, Roaming, and System Design

Technology. Wireless telecommunication systems transmit voice and data signals over networks of radio towers using radio spectrum licensed by the FCC. Access to local, regional, national and worldwide telecommunications networks is provided through system interconnections. A high-quality network, supported by continued investments in that network, will remain an important factor for U.S. Cellular to remain competitive.

VoLTE technology allows customers to utilize a 4G LTE network for both voice and data services, and offers enhanced services such as high definition voice and simultaneous voice and data sessions. VoLTE technology is now available to nearly 70% of U.S Cellular's subscribers, and deployments in additional operating markets are expected in 2020 and 2021.

5G technology is expected to help address customers’ growing demand for data services as well as create opportunities for new services requiring high speed, reliability and low latency. U.S. Cellular is working with leading companies in the wireless infrastructure and handset ecosystem to provide rich 5G experiences for customers, initially focused on mobility services and using its low band spectrum. At the same time, U.S. Cellular has begun acquiring high band spectrum to further enable the delivery of additional 5G services in the future. U.S. Cellular has begun to deploy 5G technology in its network and expects to launch commercial 5G services in selected markets in 2020. In addition, in the markets in which U.S. Cellular is deploying 5G technology, customers using U.S. Cellular's 4G LTE network will experience faster network speeds due to the network modernization efforts.

Roaming. Inter-carrier roaming agreements are negotiated between wireless operators to enable customers who are in a wireless service area other than the customer’s home service area to use wireless services in that service area. U.S. Cellular has entered into 4G LTE and VoLTE roaming agreements with national wireless companies and, as a result, a majority of customers currently have access to these services on a nationwide basis. In addition, U.S. Cellular offers a variety of international roaming options.

System Design and Construction. U.S. Cellular designs and constructs its systems in a manner it believes will permit it to provide high-quality service to substantially all types of compatible wireless devices. Designs are based on engineering studies which relate to specific markets, in support of the larger network. Network reliability is given careful consideration and extensive backup redundancy is employed in many aspects of U.S. Cellular’s network design. Route diversity, redundant equipment, ring topology and extensive use of emergency standby power also are used to enhance network reliability and minimize service disruption from any particular network element failure.

U.S. Cellular has selected high-capacity, carrier-class digital wireless switching systems that are capable of serving multiple markets through a single mobile telephone switching office. Centralized equipment, used for network and data management, is located in high-availability facilities supported by multiple levels of power and network redundancy. U.S. Cellular’s systems are designed to incorporate Internet Protocol (IP) packet-based Ethernet technology, which allows for increased data capacity and a more efficient network. Interconnection between the mobile telephone switching office and the cell sites utilizes Ethernet technology for nearly all 4G LTE sites, over fiber or microwave links.

Construction of wireless systems is capital-intensive, requiring substantial investment for land and improvements, buildings, towers, mobile telephone switching offices, cell site equipment, transport equipment, engineering and installation. U.S. Cellular primarily uses its own personnel to engineer each wireless system it owns and operates, and engages contractors to construct the facilities.

As a result of increasing demand for high–speed data and the deployment of 5G technology, U.S. Cellular expects to acquire additional wireless spectrum licenses and to make significant investments in its network to provide sufficient capacity and throughput.

The costs to develop the systems which U.S. Cellular operates (including the costs to acquire wireless spectrum licenses) have historically been financed primarily through proceeds from debt offerings, with cash generated by operations, and proceeds from the sales of wireless interests and other non-strategic assets.

Business Development Strategy

U.S. Cellular operates a regional wireless network. U.S. Cellular’s interests in wireless spectrum licenses include both direct interests whereby U.S. Cellular is the licensee and investment interests in entities which are licensees; together, these direct and investment interests involve operating and non-operating wireless spectrum licenses covering 30 states and a total population of approximately 52 million at December 31, 2019.

U.S. Cellular’s business development strategy is to obtain interests in or access to wireless spectrum licenses in its current operating markets and in areas that are adjacent to or in close proximity to its other wireless spectrum licenses, thereby building larger geographic operating market areas. U.S. Cellular believes that the acquisition of additional wireless spectrum licenses within its current operating markets will enhance its network capacity and speed to meet its customers’ growing demand for data services. From time to time, U.S. Cellular has divested outright or included in exchanges for other wireless interests certain consolidated and investment interests that were considered less essential to its current and expected future operations. As part of its business development strategy, U.S. Cellular may periodically be engaged in negotiations relating to the acquisition, exchange or disposition of companies, strategic properties, investment interests or wireless spectrum.

The FCC conducts auctions through which additional spectrum is made available for the provision of wireless services. Historically, U.S. Cellular has participated in certain FCC auctions both directly and indirectly through its limited partnership interests. During 2018 and 2019, the FCC conducted two auctions of wireless spectrum licenses in the 28 GHz and 24 GHz bands. The 28 GHz auction (Auction 101) offered two 425 MHz wireless spectrum licenses in the 28 GHz band over portions of the United States that do not have incumbent licensees. The 24 GHz auction (Auction 102) offered up to seven 100 MHz wireless spectrum licenses in the 24 GHz band in Partial Economic Areas covering most of the United States. On June 3, 2019, the FCC announced by way of public notice that U.S. Cellular was the provisional winning bidder for 408 wireless spectrum licenses in Auction 101 and 282 wireless spectrum licenses in Auction 102 for an aggregate purchase price of $256 million. The wireless spectrum licenses from Auction 101 were granted by the FCC on October 2, 2019, and the wireless spectrum licenses from Auction 102 were granted by the FCC on December 11, 2019.

On July 11, 2019, the FCC released a Public Notice establishing procedures for an auction offering wireless spectrum licenses in the 37, 39 and 47 GHz bands (Auction 103). Auction 103 is offering 34 100 MHz blocks in the Upper 37 GHz, 39 GHz, and 47 GHz bands in all Partial Economic Areas. On September 9, 2019, U.S. Cellular filed an application to participate in Auction 103 and was announced as a qualified bidder on October 31, 2019. Bidding in this auction commenced on December 10, 2019. The initial phase of this auction closed on January 30, 2020 and the assignment phase commenced on February 18, 2020.

Regulation

U.S. Cellular’s operations are subject to federal, state and local regulation. Key regulatory considerations are discussed below.

U.S. Cellular provides various wireless services, including voice and data services, pursuant to wireless spectrum licenses granted by the FCC. The construction, operation and transfer of wireless systems in the United States are regulated to varying degrees by the FCC pursuant to the Communications Act of 1934, as amended (Communications Act). The FCC currently does not require wireless carriers to comply with a number of statutory provisions otherwise applicable to common carriers that provide, originate or terminate interstate or international telecommunications. However, the FCC has enacted regulations governing construction and operation of wireless systems, licensing (including renewal of wireless spectrum licenses) and technical standards for the provision of wireless services under the Communications Act.

Wireless spectrum licenses segmented by geographic areas are granted by the FCC. The completion of acquisitions, involving the transfer of control of all or a portion of a wireless system, requires prior FCC approval. The FCC determines on a case-by-case basis whether an acquisition of wireless spectrum licenses is in the public interest. Wireless spectrum licenses are granted generally for a ten-year term or, in some cases, for a twelve-year or fifteen-year term. The FCC establishes the standards for conducting comparative renewal proceedings between a wireless license holder seeking renewal of its license and challengers filing competing applications. All of U.S. Cellular’s wireless spectrum licenses for which it applied for renewal since 1995 have been renewed. U.S. Cellular expects to continue to meet the criteria of the FCC’s license renewal process.

As part of its data services, U.S. Cellular provides internet access. Such internet access services may be subject to different regulatory requirements than other wireless services.

Although the Communications Act generally pre-empts state and local governments from regulating the entry of, or the rates charged by, wireless carriers, certain state and local governments regulate other terms and conditions of wireless services, including billing, termination of service arrangements, imposition of early termination fees, advertising, network outages, the use of handsets while driving, zoning, land use, privacy, data security and consumer protection. Further, the Federal Aviation Administration also regulates the siting, lighting and construction of transmitter towers and antennae.

Reference is made to Exhibit 13 to this Form 10-K under “Regulatory Matters” for information regarding any significant recent developments and proposals relating to the foregoing regulatory matters.

Employees

U.S. Cellular had approximately 5,500 full-time and part-time employees as of December 31, 2019. None of U.S. Cellular’s employees are represented by labor organizations.

Location and Company Information

U.S. Cellular executive offices are located at 8410 West Bryn Mawr Avenue, Chicago, Illinois 60631. U.S. Cellular’s telephone number is 773-399-8900. U.S. Cellular’s website address is www.uscellular.com. U.S. Cellular files with, or furnishes to, the Securities and Exchange Commission (SEC) annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, as well as various other information. Investors may access, free of charge, through the Investor Relations portion of the website, U.S. Cellular’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practical after such material is filed electronically with the SEC. The public may also view electronic filings of U.S. Cellular by accessing SEC filings at www.sec.gov.