March 16, 200917 yr U.S. Cellular Facing Pressure To Sell U.S. Cellular, the fifth-largest U.S. wireless operator, is reportedly under pressure to sell to one of its larger rivals. Telephone & Data Systems, which owns 81% of U.S. Cellular, could be facing a proxy battle to make a deal as subscribers flee to rivals AT&T (NYSE: T), Sprint (NYSE: S), T-Mobile, and Verizon (NYSE: VZ) Wireless. Multiple sources told Reuters that TDS's investors are urging the company to sell the mobile operator because it would be more valuable to a larger entity. U.S. Cellular does have more than 6 million subscribers, but it has a difficult time attracting many new subscribers because it doesn't get high-profile handsets like the iPhone 3G, G1, or BlackBerry Storm. The carrier could be an attractive target for Sprint and Verizon, which use the same CDMA network infrastructure. With the $28 billion Alltel (NYSE: AT) acquisition last year, Verizon showed it's not shy about snapping up regional carriers. Sprint was the only major carrier to lose subscribers last quarter, and an acquisition could help shore up its postpaid subscriber base. With more than 80% of the U.S. population having a cell phone, it's becoming increasingly difficult for the four major carriers to gain new subscribers organically. This could lead to more carriers looking toward acquisitions as a way to grow their customer base. "The wireless market is fairly mature in the United States in that there isn't a vast pool of brand-new customers," said Pete Dailey, analyst with Stratecast. "By and large, I think you'll see continued industry consolidation because it's the easiest way to gain subscribers, and then companies can layer on additional services and features to increase the average revenue per user." Welcome to Sprint Field
March 16, 200917 yr QUOTE (Athomeboy_2000 @ Mar 15, 2009 -> 11:52 PM) Welcome to Sprint Field Maybe then we'll get a leadoff hitter; otherwise, the name is an oxymoron.
March 16, 200917 yr At least if its another cell phone company, it won't be too much of a stretch to keep informally calling it "The cell." If its Sprint, however, they should go with the alliteration and officially call it "Sprint Stadium." Thanks for the cash, US Cellular. Never used your service and hated your Joan Cusack commercials, but we have a much nicer ballpark today because of you.
March 16, 200917 yr QUOTE (BearSox @ Mar 16, 2009 -> 07:53 AM) If U.S. Cellular does go away, is it possibly they forfeit the naming rights? The rights are part of a contractual obligation, as well as an asset of the firm. If US Cellular is bought, the buying entity takes over that contract and those rights. That works both ways, though - if the contract specified the name "US Cellular", and didn't say anything like "or new corporate name", then the contract is stuck as is. If there are exceptions in the contract, those would apply. So really, its hard to say what would happen, but the contract wouldn't simply die off, unless US Cellular declared bankruptcy.
March 16, 200917 yr QUOTE (NorthSideSox72 @ Mar 16, 2009 -> 07:56 AM) The rights are part of a contractual obligation, as well as an asset of the firm. If US Cellular is bought, the buying entity takes over that contract and those rights. That works both ways, though - if the contract specified the name "US Cellular", and didn't say anything like "or new corporate name", then the contract is stuck as is. If there are exceptions in the contract, those would apply. So really, its hard to say what would happen, but the contract wouldn't simply die off, unless US Cellular declared bankruptcy. Which is pretty much how Enron Field became the Juice Box.
March 16, 200917 yr Author QUOTE (PlaySumFnJurny @ Mar 15, 2009 -> 11:27 PM) Thanks for the cash, US Cellular. Never used your service and hated your Joan Cusack commercials, but we have a much nicer ballpark today because of you.
March 16, 200917 yr Author QUOTE (The Critic @ Mar 15, 2009 -> 11:43 PM) Willis Field!! Hell Yeah!!! That actually wouldnt be TOO bad. at least it sounds like it's named after someone, rather than a company.
March 16, 200917 yr My question would be if the name does change, who would have to pay for all of the new signage?
March 16, 200917 yr My guess is that the contract is assignable, but that Sprint would be on the hook for all signage.
March 16, 200917 yr QUOTE (Athomeboy_2000 @ Mar 15, 2009 -> 10:52 PM) U.S. Cellular Facing Pressure To Sell Welcome to Sprint Field Yuck. I've been with US Cellular since they were Cell One. I tried switching to Verizon for about a month. They are horrible, they lied about what deals they would give us and I'll never go back.
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.